Text: H.R.2454 — 111th Congress (2009-2010)All Information (Except Text)

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Placed on Calendar Senate (07/07/2009)

 
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 2454 Placed on Calendar Senate (PCS)]

                                                        Calendar No. 97
111th CONGRESS
  1st Session
                                H. R. 2454


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 6, 2009

                    Received and read the first time

                              July 7, 2009

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
To create clean energy jobs, achieve energy independence, reduce global 
      warming pollution and transition to a clean energy economy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Clean 
Energy and Security Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. International participation.
                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.
        ``Sec. 610. Combined efficiency and renewable electricity 
                            standard.
Sec. 102. Clarifying State authority to adopt renewable energy 
                            incentives.
Sec. 103. Federal renewable energy purchases.
              Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy.
Sec. 112. Regulations for geologic sequestration sites.
        ``Sec. 813. Geologic sequestration sites.
Sec. 113. Studies and reports.
Sec. 114. Carbon capture and sequestration demonstration and early 
                            deployment program.
Sec. 115. Commercial deployment of carbon capture and sequestration 
                            technologies.
        ``Sec. 786. Commercial deployment of carbon capture and 
                            sequestration technologies.
Sec. 116. Performance standards for coal-fueled power plants.
        ``Sec. 812. Performance standards for new coal-fired power 
                            plants.
                    Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure.
Sec. 122. Large-scale vehicle electrification program.
Sec. 123. Plug-in electric drive vehicle manufacturing.
Sec. 124. Investment in clean vehicles.
Sec. 125. Advanced technology vehicle manufacturing incentive loans.
Sec. 126. Definition of renewable biomass.
Sec. 127. Open fuel standard.
        ``Sec. 32920. Open fuel standard for transportation.
Sec. 128. Diesel emissions reduction.
Sec. 129. Loan guarantees for projects to construct renewable fuel 
                            pipelines.
Sec. 130. Fleet vehicles.
Sec. 130A. Report on natural gas vehicle emissions reductions.
     Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.
Sec. 132. Support of State renewable energy and energy efficiency 
                            programs.
Sec. 133. Support of Indian renewable energy and energy efficiency 
                            programs.
                   Subtitle E--Smart Grid Advancement

Sec. 141. Definitions.
Sec. 142.  Assessment of Smart Grid cost effectiveness in products.
Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE 
                            labels.
Sec. 144. Smart Grid peak demand reduction goals.
Sec. 145.  Reauthorization of energy efficiency public information 
                            program to include Smart Grid information.
Sec. 146. Inclusion of Smart Grid features in appliance rebate program.
                   Subtitle F--Transmission Planning

Sec. 151. Transmission planning and siting.
        ``Sec. 216A Transmission planning.
        ``Sec. 216B. Siting and construction in the Western 
                            Interconnection.
Sec. 152. Net metering for Federal agencies.
Sec. 153. Support for qualified advanced electric transmission 
                            manufacturing plants, qualified high 
                            efficiency transmission property, and 
                            qualified advanced electric transmission 
                            property.
            Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act 
                            of 2007.
Sec. 162. Technical corrections to Energy Policy Act of 2005.
         Subtitle H--Energy and Efficiency Centers and Research

Sec. 171. Energy Innovation Hubs.
Sec. 172. Advanced energy research.
Sec. 173. Building Assessment Centers.
Sec. 174. Centers for Energy and Environmental Knowledge and Outreach.
Sec. 175. High efficiency gas turbine research, development, and 
                            demonstration.
             Subtitle I--Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.
Sec. 182. Purpose.
Sec. 183. Definitions.
Sec. 184. Clean energy investment fund.
Sec. 185. Energy technology deployment goals.
Sec. 186. Clean energy deployment administration.
Sec. 187. Direct support.
Sec. 188. Indirect support.
Sec. 189. Federal credit authority.
Sec. 190. General provisions.
Sec. 191. Conforming amendments.
                       Subtitle J--Miscellaneous

Sec. 195. Increased hydroelectric generation at existing Federal 
                            facilities.
Sec. 196. Clean technology business competition grant program.
Sec. 197. National Bioenergy Partnership.
Sec. 198. Office of Consumer Advocacy.
        ``Sec. 319. Office of Consumer Advocacy.
Sec. 199. Development corporation for renewable power borrowing 
                            authority.
Sec. 199A. Study.
                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.
        ``Sec. 304. Greater energy efficiency in building codes.
Sec. 202. Building retrofit program.
Sec. 203. Energy efficient manufactured homes.
Sec. 204. Building energy performance labeling program.
Sec. 205. Tree planting programs.
Sec. 206. Energy efficiency for data center buildings.
Sec. 207. Community building code administration grants.
Sec. 208. Solar energy systems building permit requirements for receipt 
                            of community development block grant funds.
Sec. 209. Prohibition of restrictions on residential installation of 
                            solar energy system.
     Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.
Sec. 212. Other appliance efficiency standards.
Sec. 213. Appliance efficiency determinations and procedures.
        ``Sec. 334. Jurisdiction and venue.
Sec. 214. Best-in-Class Appliances Deployment Program.
Sec. 215. WaterSense.
Sec. 216. Federal procurement of water efficient products.
Sec. 217. Early adopter water efficient product incentive programs.
Sec. 218. Certified stoves program.
Sec. 219. Energy Star standards.
                 Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards.
                        ``Part B--Mobile Sources

        ``Sec. 821. Greenhouse gas emission standards for mobile 
                            sources.
Sec. 222. Greenhouse gas emissions reductions through transportation 
                            efficiency.
                   ``Part D--Transportation Emissions

        ``Sec. 841. Greenhouse gas emissions reductions through 
                            transportation efficiency.
Sec. 223. SmartWay transportation efficiency program.
        ``Sec. 822. SmartWay transportation efficiency program.
Sec. 224. State vehicle fleets.
           Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.
Sec. 242. Electric and thermal waste energy recovery award program.
Sec. 243. Clarifying election of waste heat recovery financial 
                            incentives.
Sec. 244. Motor market assessment and commercial awareness program.
Sec. 245. Motor efficiency rebate program.
        ``Sec. 347. Motor efficiency rebate program.
Sec. 246. Clean energy manufacturing revolving loan fund program.
        ``Sec. 27. Clean energy manufacturing revolving loan fund 
                            program.
Sec. 247. Clean energy and efficiency manufacturing partnerships.
Sec. 248. Technical amendments.
   Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts.
                    Subtitle F--Public Institutions

Sec. 261. Public institutions.
Sec. 262. Community energy efficiency flexibility.
Sec. 263. Small community joint participation.
Sec. 264. Low income community energy efficiency program.
Sec. 265. Consumer behavior research.
                       Subtitle G--Miscellaneous

Sec. 271. Energy efficient information and communications technologies.
        ``Sec. 543. Energy efficient information and communications 
                            technologies.
Sec. 272. National energy efficiency goals.
Sec. 273. Affiliated island energy independence team.
Sec. 274. Product carbon disclosure program.
Sec. 275. Industrial energy efficiency education and training 
                            initiative.
Sec. 276. Sense of Congress.
     Subtitle H--Green Resources for Energy Efficient Neighborhoods

Sec. 281. Short title.
Sec. 282. Definitions.
Sec. 283. Implementation of energy efficiency participation incentives 
                            for HUD programs.
Sec. 284. Basic HUD energy efficiency standards and standards for 
                            additional credit.
Sec. 285. Energy efficiency and conservation demonstration program for 
                            multifamily housing projects assisted with 
                            project-based rental assistance.
Sec. 286. Additional credit for Fannie Mae and Freddie Mac housing 
                            goals for energy-efficient and location-
                            efficient mortgages.
Sec. 287. Duty to serve underserved markets for energy-efficient and 
                            location-efficient mortgages.
Sec. 288. Consideration of energy efficiency under FHA mortgage 
                            insurance programs and Native American and 
                            Native Hawaiian loan guarantee programs.
        ``Sec. 543. Consideration of energy efficiency.
Sec. 289. Energy-efficient mortgages and location-efficient mortgages 
                            education and outreach campaign.
Sec. 290. Collection of information on energy-efficient and location-
                            efficient mortgages through Home Mortgage 
                            Disclosure Act.
Sec. 291. Ensuring availability of homeowners insurance for homes not 
                            connected to electricity grid.
Sec. 292. Mortgage incentives for energy-efficient multifamily housing.
Sec. 293. Energy-efficient certifications for manufactured housing with 
                            mortgages.
Sec. 294. Assisted housing energy loan pilot program.
Sec. 295. Making it green.
Sec. 296. Residential energy efficiency block grant program.
        ``Sec. 123. Residential energy efficiency block grant program.
Sec. 297. Including sustainable development and transportation 
                            strategies in comprehensive housing 
                            affordability strategies.
Sec. 298. Grant program to increase sustainable low-income community 
                            development capacity.
Sec. 299. HOPE VI green developments requirement.
Sec. 299A. Consideration of energy efficiency improvements in 
                            appraisals.
Sec. 299B. Housing Assistance Council.
Sec. 299C. Rural housing and economic development assistance.
Sec. 299D. Loans to States and Indian tribes to carry out renewable 
                            energy sources activities.
Sec. 299E. Green banking centers.
Sec. 299F. GAO reports on availability of affordable mortgages.
Sec. 299G. Public housing energy cost report.
Sec. 299H. Secondary market for residential renewable energy lease 
                            instruments.
Sec. 299I. Green guarantees.
              TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title.
             Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.
        ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

     ``Part A--Global Warming Pollution Reduction Goals and Targets

        ``Sec. 701. Findings and purpose.
        ``Sec. 702. Economy-wide reduction goals.
        ``Sec. 703. Reduction targets for specified sources.
        ``Sec. 704. Supplemental pollution reductions.
        ``Sec. 705. Review and program recommendations.
        ``Sec. 706. National Academy review.
        ``Sec. 707. Presidential response and recommendations.
       ``Part B--Designation and Registration of Greenhouse Gases

        ``Sec. 711. Designation of greenhouse gases.
        ``Sec. 712. Carbon dioxide equivalent value of greenhouse 
                            gases.
        ``Sec. 713. Greenhouse gas registry.
                        ``Part C--Program Rules

        ``Sec. 721. Emission allowances.
        ``Sec. 722. Prohibition of excess emissions.
        ``Sec. 723. Penalty for noncompliance.
        ``Sec. 724. Trading.
        ``Sec. 725. Banking and borrowing.
        ``Sec. 726. Strategic reserve.
        ``Sec. 727. Permits.
        ``Sec. 728. International emission allowances.
                           ``Part D--Offsets

        ``Sec. 731. Offsets Integrity Advisory Board.
        ``Sec. 732. Establishment of offsets program.
        ``Sec. 733. Eligible project types.
        ``Sec. 734. Requirements for offset projects.
        ``Sec. 735. Approval of offset projects.
        ``Sec. 736. Verification of offset projects.
        ``Sec. 737. Issuance of offset credits.
        ``Sec. 738. Audits.
        ``Sec. 739. Program review and revision.
        ``Sec. 740. Early offset supply.
        ``Sec. 741. Environmental considerations.
        ``Sec. 742. Trading.
        ``Sec. 743. International offset credits.
 ``Part E--Supplemental Emissions Reductions From Reduced Deforestation

        ``Sec. 751. Definitions.
        ``Sec. 752. Findings.
        ``Sec. 753. Supplemental emissions reductions through reduced 
                            deforestation.
        ``Sec. 754. Requirements for international deforestation 
                            reduction program.
        ``Sec. 755. Reports and reviews.
        ``Sec. 756. Legal effect of part.
Sec. 312. Definitions.
        ``Sec. 700. Definitions.
                 Subtitle B--Disposition of Allowances

Sec. 321. Disposition of allowances for global warming pollution 
                            reduction program.
                  ``Part H--Disposition of Allowances

        ``Sec. 781. Allocation of allowances for supplemental 
                            reductions.
        ``Sec. 782. Allocation of emission allowances.
        ``Sec. 783. Electricity consumers.
        ``Sec. 784. Natural gas consumers.
        ``Sec. 785. Home heating oil, propane, and kerosene consumers.
        ``Sec. 787. Allocations to refineries.
        ``Sec. 788. Supplemental agriculture and renewable energy 
                            incentives programs.
        ``Sec. 789. Climate change consumer refunds.
        ``Sec. 790. Exchange for State-issued allowances.
        ``Sec. 791. Auction procedures.
        ``Sec. 792. Auctioning allowances for other entities.
        ``Sec. 793. Establishment of funds.
        ``Sec. 794. Oversight of allocations.
        ``Sec. 795. Exchange for early action offset credits.
            Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards.
           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

        ``Sec. 801. Definitions.
                 ``Part A--Stationary Source Standards

        ``Sec. 811. Standards of performance.
                ``Part C--Exemptions From Other Programs

        ``Sec. 831. Criteria pollutants.
        ``Sec. 832. International air pollution.
        ``Sec. 833. Hazardous air pollutants.
        ``Sec. 834. New source review.
        ``Sec. 835. Title V permits.
Sec. 332. HFC Regulation.
        ``Sec. 619. Hydrofluorocarbons (HFCs).
Sec. 333. Black carbon.
                         ``Part E--Black Carbon

        ``Sec. 851. Black carbon.
Sec. 334. States.
Sec. 335. State programs.
                        ``Part F--Miscellaneous

        ``Sec. 861. State programs.
        ``Sec. 862. Grants for support of air pollution control 
                            programs.
Sec. 336. Enforcement.
Sec. 337. Conforming amendments.
Sec. 338. Davis-Bacon compliance.
Sec. 339. National strategy for domestic biological carbon 
                            sequestration.
Sec. 340. Reducing acid rain and mercury pollution.
                  Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance.
                   ``Part IV--Carbon Market Assurance

        ``Sec. 401. Oversight and assurance of carbon markets.
        ``Sec. 402. Applicability of Part III provisions.
        ``Sec. 1041. Fraud and false statements in connection with 
                            regulated allowances.
Sec. 342. Carbon derivative markets.
                Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving 
                            energy commodities.
Sec. 352. No effect on authority of the Federal Energy Regulatory 
                            Commission.
Sec. 353. Inspector General of the Commodity Futures Trading 
                            Commission.
Sec. 354. Settlement and clearing through registered derivatives 
                            clearing organizations.
Sec. 355. Limitation on eligibility to purchase a credit default swap.
Sec. 356. Transaction fees.
Sec. 357. No effect on antitrust law or authority of the Federal Trade 
                            Commission.
Sec. 358. Effect of derivatives regulatory reform legislation.
Sec. 359. Cease-and-desist authority.
Sec. 360. Presidential review of regulations.
           TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

      Subtitle A--Ensuring Real Reductions in Industrial Emissions

Sec. 401. Ensuring real reductions in industrial emissions.
       ``Part F--Ensuring Real Reductions in Industrial Emissions

        ``Sec. 761. Purposes.
        ``Sec. 762. Definitions.
             ``subpart 1--emission allowance rebate program

        ``Sec. 763. Eligible industrial sectors.
        ``Sec. 764. Distribution of emission allowance rebates.
``subpart 2--promoting international reductions in industrial emissions

        ``Sec. 765. International negotiations.
        ``Sec. 766. United States negotiating objectives with respect 
                            to multilateral environmental negotiations.
        ``Sec. 767. Presidential reports and determinations.
        ``Sec. 768. International reserve allowance program.
        ``Sec. 769. Iron and steel sector.
              Subtitle B--Green Jobs and Worker Transition

                           Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants.
Sec. 422. Increased funding for energy worker training program.
Sec. 423. Development of Information and Resources clearinghouse for 
                            vocational education and job training in 
                            renewable energy sectors.
Sec. 424. Monitoring program effectiveness.
Sec. 424A. Green construction careers demonstration project.
          Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.
Sec. 426. Program benefits.
Sec. 427. General provisions.
                    Subtitle C--Consumer Assistance

Sec. 431. Energy refund program.
                  ``TITLE XXII--ENERGY REFUND PROGRAM

        ``Sec. 2201. Energy refund program.
Sec. 432. Modification of earned income credit amount for individuals 
                            with no qualifying children.
Sec. 433. Protection of Social Security and Medicare trust funds.
                 Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes.
Sec. 442. Definitions.
Sec. 443. Governance.
Sec. 444. Determination of eligible countries.
Sec. 445. Qualifying activities.
Sec. 446. Assistance.
                 Subtitle E--Adapting to Climate Change

                      Part 1--Domestic Adaptation

         subpart a--national climate change adaptation program

Sec. 451. Global change research and data management.
Sec. 452. National Climate Service.
Sec. 453. State programs to build resilience to climate change impacts.
              subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change.
Sec. 462. Relationship to other laws.
Sec. 463. National strategic action plan.
Sec. 464. Advisory board.
Sec. 465. Reports.
Sec. 466. Definitions.
Sec. 467. Climate Change Health Protection and Promotion Fund.
                 subpart c--natural resource adaptation

Sec. 471. Purposes.
Sec. 472. Natural resources climate change adaptation policy.
Sec. 473. Definitions.
Sec. 474. Council on Environmental Quality.
Sec. 475. Natural Resources Climate Change Adaptation Panel.
Sec. 476. Natural Resources Climate Change Adaptation Strategy.
Sec. 477. Natural resources adaptation science and information.
Sec. 478. Federal natural resource agency adaptation plans.
Sec. 479. State natural resources adaptation plans.
Sec. 480. Natural Resources Climate Change Adaptation Fund.
Sec. 481. National Wildlife Habitat and Corridors Information Program.
Sec. 482. Additional provisions regarding Indian tribes.
        Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes.
Sec. 492. Definitions.
Sec. 493. International Climate Change Adaptation Program.
Sec. 494. Distribution of allowances.
Sec. 495. Bilateral assistance.
           TITLE V--AGRICULTURAL AND FORESTRY RELATED OFFSETS

   Subtitle A--Offset Credit Program From Domestic Agricultural and 
                            Forestry Sources

Sec. 501. Definitions.
Sec. 502. Establishment of offset credit program from domestic 
                            agricultural and forestry sources.
Sec. 503. List of eligible domestic agricultural and forestry offset 
                            practice types.
Sec. 504. Requirements for domestic agricultural and forestry 
                            practices.
Sec. 505. Project plan submission and approval.
Sec. 506. Verification of offset practices.
Sec. 507. Certification of offset credits.
Sec. 508. Ownership and transfer of offset credits.
Sec. 509. Program review and revision.
Sec. 510. Environmental considerations.
Sec. 511. Audits.
 Subtitle B--USDA Greenhouse Gas Emission Reduction and Sequestration 
                           Advisory Committee

Sec. 531. Establishment of USDA Greenhouse Gas Emission Reduction and 
                            Sequestration Advisory Committee.
                       Subtitle C--Miscellaneous

Sec. 551. International indirect land use changes.
Sec. 552. Biomass-based diesel.
Sec. 553. Modification of definition of renewable biomass.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) State.--The term ``State'' has the meaning given that 
        term in section 302 of the Clean Air Act.

SEC. 3. INTERNATIONAL PARTICIPATION.

    The Administrator, in consultation with the Department of State and 
the United States Trade Representative, shall annually prepare and 
certify a report to the Congress regarding whether China and India have 
adopted greenhouse gas emissions standards at least as strict as those 
standards required under this Act. If the Administrator determines that 
China and India have not adopted greenhouse gas emissions standards at 
least as stringent as those set forth in this Act, the Administrator 
shall notify each Member of Congress of his determination, and shall 
release his determination to the media.

                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the 
end the following:

``SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

    ``(a) Definitions.--For purposes of this section:
            ``(1) CHP savings.--The term `CHP savings' means--
                    ``(A) CHP system savings from a combined heat and 
                power system that commences operation after the date of 
                enactment of this section; and
                    ``(B) the increase in CHP system savings from, at 
                any time after the date of the enactment of this 
                section, upgrading, replacing, expanding, or increasing 
                the utilization of a combined heat and power system 
                that commenced operation on or before the date of 
                enactment of this section.
            ``(2) CHP system savings.--The term `CHP system savings' 
        means the increment of electric output of a combined heat and 
        power system that is attributable to the higher efficiency of 
        the combined system (as compared to the efficiency of separate 
        production of the electric and thermal outputs).
            ``(3) Combined heat and power system.--The term `combined 
        heat and power system' means a system that uses the same energy 
        source both for the generation of electrical or mechanical 
        power and the production of steam or another form of useful 
        thermal energy, provided that--
                    ``(A) the system meets such requirements relating 
                to efficiency and other operating characteristics as 
                the Commission may promulgate by regulation; and
                    ``(B) the net sales of electricity by the facility 
                to customers not consuming the thermal output from that 
                facility will not exceed 50 percent of total annual 
                electric generation by the facility.
            ``(4) Customer facility savings.--The term `customer 
        facility savings' means a reduction in end-use electricity 
        consumption (including recycled energy savings) at a facility 
        of an end-use consumer of electricity served by a retail 
        electric supplier, as compared to--
                    ``(A) in the case of a new facility, consumption at 
                a reference facility of average efficiency;
                    ``(B) in the case of an existing facility, 
                consumption at such facility during a base period, 
                except as provided in subparagraphs (C) and (D);
                    ``(C) in the case of new equipment that replaces 
                existing equipment with remaining useful life, the 
                projected consumption of the existing equipment for the 
                remaining useful life of such equipment, and 
                thereafter, consumption of new equipment of average 
                efficiency of the same equipment type; and
                    ``(D) in the case of new equipment that replaces 
                existing equipment at the end of the useful life of the 
                existing equipment, consumption by new equipment of 
                average efficiency of the same equipment type.
            ``(5) Distributed renewable generation facility.--The term 
        `distributed renewable generation facility' means a facility 
        that--
                    ``(A) generates renewable electricity;
                    ``(B) primarily serves 1 or more electricity 
                consumers at or near the facility site; and
                    ``(C) is no greater than--
                            ``(i) 2 megawatts in capacity; or
                            ``(ii) 4 megawatts in capacity, in the case 
                        of a facility that is placed in service after 
                        the date of enactment of this section and 
                        generates electricity from a renewable energy 
                        resource other than by means of combustion.
            ``(6) Electricity savings.--The term `electricity savings' 
        means reductions in electricity consumption, relative to 
        business-as-usual projections, achieved through measures 
        implemented after the date of enactment of this section, 
        limited to--
                    ``(A) customer facility savings of electricity, 
                adjusted to reflect any associated increase in fuel 
                consumption at the facility;
                    ``(B) reductions in distribution system losses of 
                electricity achieved by a retail electricity 
                distributor, as compared to losses attributable to new 
                or replacement distribution system equipment of average 
                efficiency;
                    ``(C) CHP savings; and
                    ``(D) fuel cell savings.
            ``(7) Central procurement state.--The term `central 
        procurement State' means a State that, as of January 1, 2009, 
        had adopted and implemented a legally enforceable mandate that, 
        in lieu of requiring utilities to submit credits or 
        certificates issued based on generation of electricity from (or 
        to purchase or generate electricity from) resources defined by 
        the State as renewable, requires retail electric suppliers to 
        collect payments from electricity ratepayers within the State 
        that are used for central procurement, by a State agency or a 
        public benefit corporation established pursuant to State law, 
        of credits or certificates issued based on generation of 
        electricity from resources defined by the State as renewable.
            ``(8) Federal renewable electricity credit.--The term 
        `Federal renewable electricity credit' means a credit, 
        representing one megawatt hour of renewable electricity, issued 
        pursuant to subsection (e).
            ``(9) Fuel cell.--The term `fuel cell' means a device that 
        directly converts the chemical energy of a fuel and an oxidant 
        into electricity by electrochemical processes occurring at 
        separate electrodes in the device.
            ``(10) Fuel cell savings.--The term `fuel cell savings' 
        means the electricity saved by a fuel cell that is installed 
        after the date of enactment of this section, or by upgrading a 
        fuel cell that commenced operation on or before the date of 
        enactment of this section, as a result of the greater 
        efficiency with which the fuel cell transforms fuel into 
        electricity as compared with sources of electricity delivered 
        through the grid, provided that--
                    ``(A) the fuel cell meets such requirements 
                relating to efficiency and other operating 
                characteristics as the Commission may promulgate by 
                regulation; and
                    ``(B) the net sales of electricity from the fuel 
                cell to customers not consuming the thermal output from 
                the fuel cell, if any, do not exceed 50 percent of the 
                total annual electricity generation by the fuel cell.
            ``(11) Other qualifying energy resource.--The term `other 
        qualifying energy resource' means any of the following:
                    ``(A) Landfill gas.
                    ``(B) Wastewater treatment gas.
                    ``(C) Coal mine methane used to generate 
                electricity at or near the mine mouth.
                    ``(D) Qualified waste-to-energy.
            ``(12) Qualified hydropower.--The term `qualified 
        hydropower' means--
                    ``(A) energy produced from increased efficiency 
                achieved, or additions of capacity made, on or after 
                January 1, 1988, at a hydroelectric facility that was 
                placed in service before that date and does not include 
                additional energy generated as a result of operational 
                changes not directly associated with efficiency 
                improvements or capacity additions; or
                    ``(B) energy produced from generating capacity 
                added to a dam on or after January 1, 1988, provided 
                that the Commission certifies that--
                            ``(i) the dam was placed in service before 
                        the date of the enactment of this section and 
                        was operated for flood control, navigation, or 
                        water supply purposes and was not producing 
                        hydroelectric power prior to the addition of 
                        such capacity;
                            ``(ii) the hydroelectric project installed 
                        on the dam is licensed (or is exempt from 
                        licensing) by the Commission and is in 
                        compliance with the terms and conditions of the 
                        license or exemption, and with other applicable 
                        legal requirements for the protection of 
                        environmental quality, including applicable 
                        fish passage requirements; and
                            ``(iii) the hydroelectric project installed 
                        on the dam is operated so that the water 
                        surface elevation at any given location and 
                        time that would have occurred in the absence of 
                        the hydroelectric project is maintained, 
                        subject to any license or exemption 
                        requirements that require changes in water 
                        surface elevation for the purpose of improving 
                        the environmental quality of the affected 
                        waterway.
            ``(13) Qualified waste-to-energy.--The term `qualified 
        waste-to-energy' means energy from the combustion of municipal 
        solid waste or construction, demolition, or disaster debris, or 
        from the gasification or pyrolization of such waste or debris 
        and the combustion of the resulting gas at the same facility, 
        provided that--
                    ``(A) such term shall include only the energy 
                derived from the non-fossil biogenic portion of such 
                waste or debris;
                    ``(B) the Commission determines, with the 
                concurrence of the Administrator of the Environmental 
                Protection Agency, that the total lifecycle greenhouse 
                gas emissions attributable to the generation of 
                electricity from such waste or debris are lower than 
                those attributable to the likely alternative method of 
                disposing of such waste or debris; and
                    ``(C) the owner or operator of the facility 
                generating electricity from such energy provides to the 
                Commission, on an annual basis--
                            ``(i) a certification that the facility is 
                        in compliance with all applicable State, 
                        tribal, and Federal environmental permits;
                            ``(ii) in the case of a facility that 
                        commenced operation before the date of 
                        enactment of this section, a certification that 
                        the facility meets emissions standards 
                        promulgated under section 112 or 129 of the 
                        Clean Air Act (42 U.S.C. 7412 or 7429) that 
                        apply as of the date of enactment of this 
                        section to new facilities within the relevant 
                        source category; and
                            ``(iii) in the case of the combustion, 
                        pyrolization, or gasification of municipal 
                        solid waste, a certification that each local 
                        government unit from which such waste 
                        originates operates, participates in the 
                        operation of, contracts for, or otherwise 
                        provides for, recycling services for its 
                        residents.
            ``(14) Recycled energy savings.--The term `recycled energy 
        savings' means a reduction in electricity consumption that 
        results from a modification of an industrial or commercial 
        system that commenced operation before the date of enactment of 
        this section, in order to recapture electrical, mechanical, or 
        thermal energy that would otherwise be wasted.
            ``(15) Renewable biomass.--The term `renewable biomass' 
        means any of the following:
                    ``(A) Materials, pre-commercial thinnings, or 
                removed invasive species from National Forest System 
                land and public lands (as defined in section 103 of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1702)), including those that are byproducts of 
                preventive treatments (such as trees, wood, brush, 
                thinnings, chips, and slash), that are removed as part 
                of a federally recognized timber sale, or that are 
                removed to reduce hazardous fuels, to reduce or contain 
                disease or insect infestation, or to restore ecosystem 
                health, and that are--
                            ``(i) not from components of the National 
                        Wilderness Preservation System, Wilderness 
                        Study Areas, Inventoried Roadless Areas, old 
                        growth stands, late-successional stands (except 
                        for dead, severely damaged, or badly infested 
                        trees), components of the National Landscape 
                        Conservation System, National Monuments, 
                        National Conservation Areas, Designated 
                        Primitive Areas, or Wild and Scenic Rivers 
                        corridors;
                            ``(ii) harvested in environmentally 
                        sustainable quantities, as determined by the 
                        appropriate Federal land manager; and
                            ``(iii) harvested in accordance with 
                        Federal and State law, and applicable land 
                        management plans.
                    ``(B) Any organic matter that is available on a 
                renewable or recurring basis from non-Federal land or 
                land belonging to an Indian or Indian tribe that is 
                held in trust by the United States or subject to a 
                restriction against alienation imposed by the United 
                States, including--
                            ``(i) renewable plant material, including--
                                    ``(I) feed grains;
                                    ``(II) other agricultural 
                                commodities;
                                    ``(III) other plants and trees; and
                                    ``(IV) algae; and
                            ``(ii) waste material, including--
                                    ``(I) crop residue;
                                    ``(II) other vegetative waste 
                                material (including wood waste and wood 
                                residues);
                                    ``(III) animal waste and byproducts 
                                (including fats, oils, greases, and 
                                manure);
                                    ``(IV) construction waste; and
                                    ``(V) food waste and yard waste.
                    ``(C) Residues and byproducts from wood, pulp, or 
                paper products facilities.
            ``(16) Renewable electricity.--The term `renewable 
        electricity' means electricity generated (including by means of 
        a fuel cell) from a renewable energy resource or other 
        qualifying energy resources.
            ``(17) Renewable energy resource.--The term `renewable 
        energy resource' means each of the following:
                    ``(A) Wind energy.
                    ``(B) Solar energy.
                    ``(C) Geothermal energy.
                    ``(D) Renewable biomass.
                    ``(E) Biogas derived exclusively from renewable 
                biomass.
                    ``(F) Biofuels derived exclusively from renewable 
                biomass.
                    ``(G) Qualified hydropower.
                    ``(H) Marine and hydrokinetic renewable energy, as 
                that term is defined in section 632 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17211).
            ``(18) Retail electric supplier.--
                    ``(A) In general.--The term `retail electric 
                supplier' means, for any given year, an electric 
                utility that sold not less than 4,000,000 megawatt 
                hours of electric energy to electric consumers for 
                purposes other than resale during the preceding 
                calendar year.
                    ``(B) Inclusions and limitations.--For purposes of 
                determining whether an electric utility qualifies as a 
                retail electric supplier under subparagraph (A)--
                            ``(i) the sales of any affiliate of an 
                        electric utility to electric consumers, other 
                        than sales to the affiliate's lessees or 
                        tenants, for purposes other than resale shall 
                        be considered to be sales of such electric 
                        utility; and
                            ``(ii) sales by any electric utility to an 
                        affiliate, lessee, or tenant of such electric 
                        utility shall not be treated as sales to 
                        electric consumers.
                    ``(C) Affiliate.--For purposes of this paragraph, 
                the term `affiliate' when used in relation to a person, 
                means another person that directly or indirectly owns 
                or controls, is owned or controlled by, or is under 
                common ownership or control with, such person, as 
                determined under regulations promulgated by the 
                Commission.
            ``(19) Retail electric supplier's base amount.--The term 
        `retail electric supplier's base amount' means the total amount 
        of electric energy sold by the retail electric supplier, 
        expressed in megawatt hours, to electric customers for purposes 
        other than resale during the relevant calendar year, 
        excluding--
                    ``(A) electricity generated by a hydroelectric 
                facility that is not qualified hydropower;
                    ``(B) electricity generated by a nuclear generating 
                unit placed in service after the date of enactment of 
                this section; and
                    ``(C) the proportion of electricity generated by a 
                fossil-fueled generating unit that is equal to the 
                proportion of greenhouse gases produced by such unit 
                that are captured and geologically sequestered.
            ``(20) Retire and retirement.--The terms `retire' and 
        `retirement' with respect to a Federal renewable electricity 
        credit, means to disqualify such credit for any subsequent use 
        under this section, regardless of whether the use is a sale, 
        transfer, exchange, or submission in satisfaction of a 
        compliance obligation.
            ``(21) Third-party efficiency provider.--The term `third-
        party efficiency provider' means any retailer, building owner, 
        energy service company, financial institution or other 
        commercial, industrial or nonprofit entity that is capable of 
        providing electricity savings in accordance with the 
        requirements of this section.
            ``(22) Total annual electricity savings.--The term `total 
        annual electricity savings' means electricity savings during a 
        specified calendar year from measures implemented since the 
        date of the enactment of this section, taking into account 
        verified measure lifetimes or verified annual savings attrition 
        rates, as determined in accordance with such regulations as the 
        Commission may promulgate and measured in megawatt hours.
    ``(b) Annual Compliance Obligation.--
            ``(1) In general.--For each of calendar years 2012 through 
        2039, not later than March 31 of the following calendar year, 
        each retail electric supplier shall submit to the Commission an 
        amount of Federal renewable electricity credits and 
        demonstrated total annual electricity savings that, in the 
        aggregate, is equal to such retail electric supplier's annual 
        combined target as set forth in subsection (d), except as 
        otherwise provided in subsection (h).
            ``(2) Demonstration of savings.--For purposes of this 
        subsection, submission of demonstrated total annual electricity 
        savings means submission of a report that demonstrates, in 
        accordance with the requirements of subsection (f), the total 
        annual electricity savings achieved by the retail electric 
        supplier within the relevant compliance year.
            ``(3) Renewable electricity credits portion.--Except as 
        provided in paragraph (4), each retail electric supplier must 
        submit Federal renewable electricity credits equal to at least 
        three quarters of the retail electric supplier's annual 
        combined target.
            ``(4) State petition.--
                    ``(A) In general.--Upon written request from the 
                Governor of any State (including, for purposes of this 
                paragraph, the Mayor of the District of Columbia), the 
                Commission shall increase, to not more than two fifths, 
                the proportion of the annual combined targets of retail 
                electric suppliers located within such State that may 
                be met through submission of demonstrated total annual 
                electricity savings, provided that such increase shall 
                be effective only with regard to the portion of a 
                retail electric supplier's annual combined target that 
                is attributable to electricity sales within such State.
                    ``(B) Contents.--A Governor's request under this 
                paragraph shall include an explanation of the 
                Governor's rationale for determining, after 
                consultation with the relevant State regulatory 
                authority and other retail electricity ratemaking 
                authorities within the State, to make such request. The 
                request shall specify the maximum proportion of annual 
                combined targets (not more than two fifths) that can be 
                met through demonstrated total annual electricity 
                savings, and the period for which such proportion shall 
                be effective.
                    ``(C) Revision.--The Governor of any State may, 
                after consultation with the relevant State regulatory 
                authority and other retail electricity ratemaking 
                authorities within the State, submit a written request 
                for revocation or revision of a previous request 
                submitted under this paragraph. The Commission shall 
                grant such request, provided that--
                            ``(i) any revocation or revision shall not 
                        apply to the combined annual target for any 
                        year that is any earlier than 2 calendar years 
                        after the calendar year in which such request 
                        is submitted, so as to provide retail electric 
                        suppliers with adequate notice of such change; 
                        and
                            ``(ii) any revision shall meet the 
                        requirements of subparagraph (A).
    ``(c) Establishment of Program.--Not later than 1 year after the 
date of enactment of this section, the Commission shall promulgate 
regulations to implement and enforce the requirements of this section. 
In promulgating such regulations, the Commission shall, to the extent 
practicable--
            ``(1) preserve the integrity, and incorporate best 
        practices, of existing State and tribal renewable electricity 
        and energy efficiency programs;
            ``(2) rely upon existing and emerging State, tribal, or 
        regional tracking systems that issue and track non-Federal 
        renewable electricity credits; and
            ``(3) cooperate with the States and Indian tribes to 
        facilitate coordination between State, tribal, and Federal 
        renewable electricity and energy efficiency programs and to 
        minimize administrative burdens and costs to retail electric 
        suppliers.
    ``(d) Annual Compliance Requirement.--
            ``(1) Annual combined targets.--For each of calendar years 
        2012 through 2039, a retail electric supplier's annual combined 
        target shall be the product of--
                    ``(A) the required annual percentage for such year, 
                as set forth in paragraph (2); and
                    ``(B) the retail electric supplier's base amount 
                for such year.
            ``(2) Required annual percentage.--For each of calendar 
        years 2012 through 2039, the required annual percentage shall 
        be as follows:


 
            ``Calendar year                 Required annual percentage
 
2012...................................  6.0
2013...................................  6.0
2014...................................  9.5
2015...................................  9.5
2016...................................  13.0
2017...................................  13.0
2018...................................  16.5
2019...................................  16.5
2020...................................  20.0
2021 through 2039......................  20.0
 

    ``(e) Federal Renewable Electricity Credits.--
            ``(1) In general.--The regulations promulgated under this 
        section shall include provisions governing the issuance, 
        tracking, and verification of Federal renewable electricity 
        credits. Except as provided in paragraphs (2), (3), and (4) of 
        this subsection, the Commission shall issue to each generator 
        of renewable electricity, 1 Federal renewable electricity 
        credit for each megawatt hour of renewable electricity 
        generated by such generator after December 31, 2011. The 
        Commission shall assign a unique serial number to each Federal 
        renewable electricity credit.
            ``(2) Generation from certain state renewable electricity 
        programs.--(A) Except as provided in subparagraph (B), where 
        renewable electricity is generated with the support of payments 
        from a retail electric supplier pursuant to a State renewable 
        electricity program (whether through State alternative 
        compliance payments or through payments to a State renewable 
        electricity procurement fund or entity), the Commission shall 
        issue Federal renewable electricity credits to such retail 
        electric supplier for the proportion of the relevant renewable 
        electricity generation that is attributable to the retail 
        electric supplier's payments, as determined pursuant to 
        regulations issued by the Commission. For any remaining portion 
        of the relevant renewable electricity generation, the 
        Commission shall issue Federal renewable electricity credits to 
        the generator, as provided in paragraph (1), except that in no 
        event shall more than 1 Federal renewable electricity credit be 
        issued for the same megawatt hour of electricity. In 
        determining how Federal renewable electricity credits will be 
        apportioned among retail electric suppliers and generators in 
        such circumstances, the Commission shall consider information 
        and guidance furnished by the relevant State or States.
            ``(B) In the case of a central procurement State that 
        pursuant to subsection (g) has assumed responsibility for 
        compliance with the requirements of subsection (b), the 
        Commission shall issue directly to the State Federal renewable 
        electricity credits for any renewable electricity for which the 
        State, pursuant to a mandate described in subsection (a)(7), 
        has centrally procured credits or certificates issued based on 
        generation of such renewable electricity.
            ``(3) Certain power sales contracts.--Except as otherwise 
        provided in paragraph (2), when a generator has sold renewable 
        electricity to a retail electric supplier under a contract for 
        power from a facility placed in service before the date of 
        enactment of this section, and the contract does not provide 
        for the determination of ownership of the Federal renewable 
        electricity credits associated with such generation, the 
        Commission shall issue such Federal renewable electricity 
        credits to the retail electric supplier for the duration of the 
        contract.
            ``(4) Credit multiplier for distributed renewable 
        generation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Commission shall issue 3 Federal 
                renewable electricity credits for each megawatt hour of 
                renewable electricity generated by a distributed 
                renewable generation facility.
                    ``(B) Adjustment.--Except as provided in 
                subparagraph (C), not later than January 1, 2014, and 
                not less frequently than every 4 years thereafter, the 
                Commission shall review the effect of this paragraph 
                and shall, as necessary, reduce the number of Federal 
                renewable electricity credits per megawatt hour issued 
                under this paragraph for any given energy source or 
                technology, but not below 1, to ensure that such number 
                is no higher than the Commission determines is 
                necessary to make distributed renewable generation 
                facilities using such source or technology cost 
                competitive with other sources of renewable electricity 
                generation.
                    ``(C) Facilities placed in service after 
                enactment.--For any distributed renewable generation 
                facility placed in service after the date of enactment 
                of this section, subparagraph (B) shall not apply for 
                the first 10 years after the date on which the facility 
                is placed in service. For each year during such 10-year 
                period, the Commission shall issue to the facility the 
                same number of Federal renewable electricity credits 
                per megawatt hour as are issued to that facility in the 
                year in which such facility is placed in service. After 
                such 10-year period, the Commission shall issue Federal 
                renewable electricity credits to the facility in 
                accordance with the current multiplier as determined 
                pursuant to subparagraph (B).
            ``(5) Credits based on qualified hydropower.--For purposes 
        of this subsection, the number of Federal renewable electricity 
        credits issued for qualified hydropower shall be calculated--
                    ``(A) based solely on the increase in average 
                annual generation directly resulting from the 
                efficiency improvements or capacity additions described 
                in subsection (a)(13)(A); and
                    ``(B) using the same water flow information used to 
                determine a historic average annual generation baseline 
                for the hydroelectric facility, as certified by the 
                Commission.
            ``(6) Generation from qualified waste-to-energy.--In the 
        case of electricity generated from the combustion of any 
        municipal solid waste or construction, demolition, or disaster 
        debris that is included in the definition of renewable biomass, 
        or from the gasification or pyrolization of such waste or 
        debris and the combustion of the resulting gas at the same 
        facility, the Commission shall issue Federal renewable 
        electricity credits only for electricity generated from 
        qualified waste-to-energy.
            ``(7) Generation from mixed renewable and nonrenewable 
        resources.--If electricity is generated using both a renewable 
        energy resource or other qualifying energy resource and an 
        energy source that is not a renewable energy resource or other 
        qualifying energy resource (as, for example, in the case of co-
        firing of renewable biomass and fossil fuel), the Commission 
        shall issue Federal renewable electricity credits based on the 
        proportion of the electricity that is attributable to the 
        renewable energy resource or other qualifying energy resource.
            ``(8) Prohibition against double-counting.--Except as 
        provided in paragraph (4) of this subsection, the Commission 
        shall ensure that no more than 1 Federal renewable electricity 
        credit will be issued for any megawatt hour of renewable 
        electricity and that no Federal renewable electricity credit 
        will be used more than once for compliance with this section.
            ``(9) Trading.--The lawful holder of a Federal renewable 
        electricity credit may sell, exchange, transfer, submit for 
        compliance in accordance with subsection (b), or submit such 
        credit for retirement by the Commission.
            ``(10) Banking.--A Federal renewable electricity credit may 
        be submitted in satisfaction of the compliance obligation set 
        forth in subsection (b) for the compliance year in which the 
        credit was issued or for any of the 3 immediately subsequent 
        compliance years. The Commission shall retire any Federal 
        renewable electricity credit that has not been retired by April 
        2 of the calendar year that is 3 years after the calendar year 
        in which the credit was issued.
            ``(11) Retirement.--The Commission shall retire a Federal 
        renewable electricity credit immediately upon submission by the 
        lawful holder of such credit, whether in satisfaction of a 
        compliance obligation under subsection (b) or on some other 
        basis.
    ``(f) Electricity Savings.--
            ``(1) Standards for measurement of savings.--As part of the 
        regulations promulgated under this section, the Commission 
        shall prescribe standards and protocols for defining and 
        measuring electricity savings and total annual electricity 
        savings that can be counted towards the compliance obligation 
        set forth in subsection (b). Such protocols and standards 
        shall, at minimum--
                    ``(A) specify the types of energy efficiency and 
                energy conservation measures that can be counted;
                    ``(B) require that energy consumption estimates for 
                customer facilities or portions of facilities in the 
                applicable base and current years be adjusted, as 
                appropriate, to account for changes in weather, level 
                of production, and building area;
                    ``(C) account for the useful life of measures;
                    ``(D) include deemed savings values for specific, 
                commonly used measures;
                    ``(E) allow for savings from a program to be 
                estimated based on extrapolation from a representative 
                sample of participating customers;
                    ``(F) include procedures for counting CHP savings, 
                recycled energy savings, and fuel cell savings;
                    ``(G) include procedures for documenting measurable 
                and verifiable electricity savings achieved as a result 
                of market transformation efforts;
                    ``(H) include procedures for counting electricity 
                savings achieved by solar water heating and solar light 
                pipe technology that has the capability to provide 
                measurable data on the amount of megawatt-hours 
                displaced;
                    ``(I) avoid double-counting of savings used for 
                compliance with this section, including savings that 
                are transferred pursuant to paragraph (3);
                    ``(J) ensure that, except as provided in 
                subparagraph (L), the retail electric supplier claiming 
                the savings played a significant role in achieving the 
                savings (including through the activities of a 
                designated agent of the supplier or through the 
                purchase of transferred savings);
                    ``(K) include savings from programs administered by 
                a retail electric supplier (or a retail electricity 
                distributor that is not a retail electric supplier) 
                that are funded by State, Federal, or other sources;
                    ``(L) in any State in which the State regulatory 
                authority has designated 1 or more entities to 
                administer electric ratepayer-funded efficiency 
                programs approved by such State regulatory authority, 
                provide that electricity savings achieved through such 
                programs shall be distributed equitably among retail 
                electric suppliers in accordance with the direction of 
                the relevant State regulatory authority; and
                    ``(M) exclude savings achieved as a result of 
                compliance with mandatory appliance and equipment 
                efficiency standards or building codes.
            ``(2) Standards for third-party verification of savings.--
        The regulations promulgated under this section shall establish 
        procedures and standards requiring third-party verification of 
        all reported electricity savings, including requirements for 
        accreditation of third-party verifiers to ensure that such 
        verifiers are professionally qualified and have no conflicts of 
        interest.
            ``(3) Transfers of savings.--
                    ``(A) Bilateral contracts for savings transfers.--
                Subject to the limitations of this paragraph, a retail 
                electric supplier may use electricity savings 
                transferred, pursuant to a bilateral contract, from 
                another retail electric supplier, an owner of an 
                electric distribution facility that is not a retail 
                electric supplier, a State, or a third-party efficiency 
                provider to meet the applicable compliance obligation 
                under subsection (b).
                    ``(B) Requirements.--Electricity savings 
                transferred and used for compliance pursuant to this 
                paragraph shall be--
                            ``(i) measured and verified in accordance 
                        with the procedures specified under this 
                        subsection;
                            ``(ii) reported in accordance with 
                        paragraph (4) of this subsection; and
                            ``(iii) achieved within the same State as 
                        is served by the retail electric supplier.
                    ``(C) Regulatory approval.--Nothing in this 
                paragraph shall limit or affect the authority of a 
                State regulatory authority to require a retail electric 
                supplier that is regulated by such authority to obtain 
                such authority's authorization or approval of a 
                contract for transfer of savings under this paragraph.
            ``(4) Reporting savings.--
                    ``(A) Requirements.--The regulations promulgated 
                under this section shall establish requirements 
                governing the submission of reports to demonstrate, in 
                accordance with the protocols and standards for 
                measurement and third-party verification established 
                under this subsection, the total annual electricity 
                savings achieved by a retail electric supplier within 
                the relevant year.
                    ``(B) Review and approval.--The Commission shall 
                review each report submitted to the Commission by a 
                retail electric supplier and shall exclude any 
                electricity savings that have not been adequately 
                demonstrated in accordance with the requirements of 
                this subsection.
            ``(5) State administration.--
                    ``(A) Delegation of authority.--Upon receipt of an 
                application from the Governor of a State (including, 
                for purposes of this subsection, the Mayor of the 
                District of Columbia), the Commission may delegate to 
                the State the authority to review and verify reported 
                electricity savings for purposes of determining 
                demonstrated total annual electricity savings that may 
                be counted towards a retail electric supplier's 
                compliance obligation under subsection (b). The 
                Commission shall make a substantive determination 
                approving or disapproving a State application under 
                this subparagraph, after notice and comment, within 180 
                days of receipt of a complete application.
                    ``(B) Alternative measurement and verification 
                procedures and standards.--As part of an application 
                submitted under subparagraph (A), a State may request 
                to use alternative measurement and verification 
                procedures and standards to those specified in 
                paragraphs (1) and (2), provided the State demonstrates 
                that such alternative procedures and standards provide 
                a level of accuracy of measurement and verification at 
                least equivalent to the Federal procedures and 
                standards promulgated under paragraphs (1) and (2).
                    ``(C) Review of state implementation.--The 
                Commission shall, not less frequently than once every 4 
                years, review each State's implementation of delegated 
                authority under this paragraph to ensure conformance 
                with the requirements of this section. The Commission 
                may, at any time, revoke the delegation of authority 
                under this section upon a finding that the State is not 
                implementing its delegated responsibilities in 
                conformity with this paragraph. As a condition of 
                maintaining its delegated authority under this 
                paragraph, the Commission may require a State to submit 
                a revised application under subparagraph (A) if the 
                Commission has--
                            ``(i) promulgated new or substantially 
                        revised measurement and verification procedures 
                        and standards under this subsection; or
                            ``(ii) otherwise substantially revised the 
                        program established under this section.
    ``(g) Alternative Compliance Payments.--
            ``(1) In general.--A retail electric supplier, or a central 
        procurement State that, pursuant to subsection (g), has assumed 
        responsibility for compliance with the requirements of 
        subsection (b), may satisfy the requirements of subsection (b) 
        in whole or in part by submitting in accordance with this 
        subsection, in lieu of each Federal renewable electricity 
        credit or megawatt hour of demonstrated total annual 
        electricity savings that would otherwise be due, a payment 
        equal to $25, adjusted for inflation on January 1 of each year 
        following calendar year 2009, in accordance with such 
        regulations as the Commission may promulgate.
            ``(2) Payment to state funds.--Except as otherwise provided 
        in this paragraph and paragraph (4), payments made under this 
        subsection shall be made directly to the State or States in 
        which the retail electric supplier is located, in proportion to 
        the portion of the retail electric supplier's base amount that 
        is sold within each relevant State, provided that such payments 
        are deposited directly into a fund in the State treasury 
        established for this purpose and that the State uses such funds 
        in accordance with paragraphs (3) and (5) and with paragraph 
        (4), where applicable. If the Commission determines at any time 
        that a State is in substantial noncompliance with paragraph (3) 
        or (5), or with paragraph (4), where applicable, the Commission 
        shall direct that any future alternative compliance payments 
        that would otherwise be paid to such State under this 
        subsection shall instead be paid to the Commission and 
        deposited in the United States Treasury.
            ``(3) State use of funds.--As a condition of continued 
        receipt of alternative compliance payments pursuant to this 
        subsection, a State shall use such payments exclusively for the 
        purposes of--
                    ``(A) deploying technologies that generate 
                electricity from renewable energy resources; or
                    ``(B) implementing cost-effective energy efficiency 
                programs to achieve electricity savings.
            ``(4) Central procurement states.--
                    ``(A) In general.--A central procurement State 
                that, pursuant to subsection (g), has assumed 
                responsibility for compliance with the requirements of 
                subsection (b) shall deposit any alternative compliance 
                payments under this subsection in a unique fund in the 
                State treasury created and used solely for this 
                purpose.
                    ``(B) Requirements.--As a precondition of making 
                alternative compliance payments under this subsection, 
                a central procurement State shall certify to the 
                Commission, in accordance with such requirements as the 
                Commission may prescribe, that--
                            ``(i) making such payments is the lowest 
                        cost alternative to meet the requirements of 
                        subsection (b); and
                            ``(ii) moneys used by the State to make 
                        such payments are in addition to any spending 
                        that the State, and any separate entity charged 
                        with administering the State central 
                        procurement requirement identified under 
                        subsection (a)(7), otherwise collectively would 
                        direct to the purposes identified in paragraph 
                        (3).
                    ``(C) Uses.--A central procurement State that makes 
                alternative compliance payments under this subsection 
                shall certify to the Commission that, in using such 
                payments in accordance with paragraph (3), it has, to 
                the extent practicable, maximized the level of 
                deployment of renewable electricity generation 
                (measured in megawatt hours) and electricity savings 
                per dollar that are achieved through such expenditures.
            ``(5) Reporting.--As a condition of continued receipt of 
        alternative compliance payments pursuant to this subsection, a 
        State shall, within 12 months of receipt of any such payments 
        and at 12-month intervals thereafter until such payments are 
        expended, provide a report to the Commission, in accordance 
        with such regulations as the Commission may prescribe, giving a 
        full accounting of the use of such payments, including a 
        detailed description of the activities funded thereby and 
        demonstrating compliance with the requirements of this 
        subsection.
    ``(g) Central Procurement States.--
            ``(1) In general.--A central procurement State may, upon 
        submission of a written request by the Governor of such State 
        to the Commission, assume responsibility for compliance with 
        the requirements of subsection (b) on behalf of retail electric 
        suppliers located in such State, exclusively with regard to the 
        portion of such retail electric suppliers' base amount that is 
        sold within the State.
            ``(2) Demonstration of electricity savings.--If a central 
        procurement State opts to meet any part of the requirements of 
        subsection (b) based on the achievement of demonstrated total 
        annual electricity savings, regardless of whether such State 
        has received delegated authority pursuant to subsection (f)(5), 
        such State shall submit such demonstrated total annual 
        electricity savings to the Commission through an annual report 
        in accordance with requirements prescribed by the Commission by 
        regulation, which shall be of equivalent stringency to those 
        applicable to retail electric suppliers under subsection (f).
            ``(3) Noncompliance.--If a central procurement State that 
        pursuant to this subsection has assumed responsibility for 
        compliance with the requirements of subsection (b), fails to 
        satisfy the requirements of subsection (b) or (h) for any year, 
        the State's assumption of responsibility under this subsection 
        shall be discontinued immediately, and retail electric 
        suppliers located in such State henceforth shall be directly 
        subject to the requirements of this section.
    ``(h) Information Collection.--The Commission may require any 
retail electric supplier, renewable electricity generator, or such 
other entities as the Commission deems appropriate, to provide any 
information the Commission determines appropriate to carry out this 
section. Failure to submit such information or submission of false or 
misleading information under this subsection shall be a violation of 
this section.
    ``(i) Enforcement and Judicial Review.--
            ``(1) Failure to submit credits or demonstrate savings.--If 
        any person, other than any central procurement State that 
        pursuant to subsection (g) has assumed responsibility for 
        compliance with the requirements of subsection (b), fails to 
        comply with the requirements of subsection (b) or (h), such 
        person shall be liable to pay to the Commission a civil penalty 
        equal to the product of--
                    ``(A) double the alternative compliance payment 
                calculated under subsection (h)(1), and
                    ``(B) the aggregate quantity of Federal renewable 
                electricity credits, total annual electricity savings, 
                or equivalent alternative compliance payments that the 
                person failed to submit in violation of the 
                requirements of subsections (b) and (h).
            ``(2) Enforcement.--The Commission shall assess a civil 
        penalty under paragraph (1) in accordance with the procedures 
        described in section 31(d) of the Federal Power Act (16 U.S.C. 
        823b(d)).
            ``(3) Violation of requirement of regulations or orders.--
        Any person, other than any central procurement State that 
        pursuant to subsection (g) has assumed responsibility for 
        compliance with the requirements of subsection (b), who 
        violates, or fails or refuses to comply with, any requirement 
        of a regulation promulgated or order issued under this section 
        shall be subject to a civil penalty under section 316A(b) of 
        the Federal Power Act (16 U.S.C. 825o-1). Such penalty shall be 
        assessed by the Commission in the same manner as in the case of 
        a violation referred to in section 316A(b) of such Act.
    ``(j) Judicial Review.--Any person aggrieved by a final action 
taken by the Commission under this section, other than the assessment 
of a civil penalty under subsection (j), may use the procedures for 
review described in section 313 of the Federal Power Act (16 U.S.C. 
825l). For purposes of this paragraph, references to an order in 
section 313 of such Act shall be deemed to refer also to all other 
final actions of the Commission under this section other than the 
assessment of a civil penalty under subsection (i).
    ``(k) Savings Provisions.--Nothing in this section shall--
            ``(1) diminish or qualify any authority of a State, a 
        political subdivision of a State, or an Indian tribe to--
                    ``(A) adopt or enforce any law or regulation 
                respecting renewable electricity or energy efficiency, 
                including any law or regulation establishing 
                requirements more stringent than those established by 
                this section, provided that no such law or regulation 
                may relieve any person of any requirement otherwise 
                applicable under this section; or
                    ``(B) regulate the acquisition and disposition of 
                Federal renewable electricity credits by retail 
                electric suppliers within the jurisdiction of such 
                State, political subdivision, or Indian tribe, 
                including the authority to require such retail electric 
                supplier to acquire and submit to the Secretary for 
                retirement Federal renewable electricity credits in 
                excess of those submitted under this section; or
            ``(2) affect the application of, or the responsibility for 
        compliance with, any other provision of law or regulation, 
        including environmental and licensing requirements.
    ``(l) Sunset.--This section expires on December 31, 2040.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2601 and following) is amended by inserting after the item 
relating to section 609 the following:

``Sec. 610. Combined efficiency and renewable electricity standard.''.

SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE ENERGY 
              INCENTIVES.

    Section 210 of the Public Utility Regulatory Policies Act of 1978 
is amended by adding at the end thereof:
    ``(o) Clarification of State Authority to Adopt Renewable Energy 
Incentives.--Notwithstanding any other provision of this Act or the 
Federal Power Act, a State legislature or regulatory authority may set 
the rates for a sale of electric energy by a facility generating 
electric energy from renewable energy sources pursuant to a State-
approved production incentive program under which the facility 
voluntarily sells electric energy. For purposes of this subsection, 
`State-approved production incentive program' means a requirement 
imposed pursuant to State law, or by a State regulatory authority 
acting within its authority under State law, that an electric utility 
purchase renewable energy (as defined in section 609 of this Act) at a 
specified rate.''.

SEC. 103. FEDERAL RENEWABLE ENERGY PURCHASES.

    (a) Requirement.--For each of calendar years 2012 through 2039, the 
President shall ensure that, of the total amount of electricity Federal 
agencies consume in the United States during each calendar year, the 
following percentage shall be renewable electricity:


 
             Calendar year                  Required annual percentage
 
2012...................................  6.0
2013...................................  6.0
2014...................................  9.5
2015...................................  9.5
2016...................................  13.0
2017...................................  13.0
2018...................................  16.5
2019...................................  16.5
2020...................................  20.0
2021 through 2039......................  20.0
 

    (b) Definitions.--For purposes of this section:
            (1) Renewable electricity.--The term ``renewable 
        electricity'' shall have the meaning given in section 610 of 
        the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2601 and following).
            (2) Renewable energy resource.--The term ``renewable energy 
        resource'' shall have the meaning given in section 610 of the 
        Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 
        and following).
    (c) Modification of Requirement.--If the President determines that 
the Federal Government cannot feasibly meet the requirement established 
in subsection (a) in a specific calendar year, the President may, by 
written order, reduce such requirement for such calendar year to a 
percentage the President determines the Federal Government can feasibly 
meet.
    (d) Reports.--Not later than April 1, 2013, and each year 
thereafter, the Secretary of Energy shall provide a report to Congress 
on the percentage of each Federal agency's electricity consumption in 
the United States that was renewable electricity in the previous 
calendar year.
    (e) Contracts for Renewable Energy.--(1) Notwithstanding section 
501(b)(1)(B) of title 40, United States Code, a contract for the 
acquisition of electricity generated from a renewable energy resource 
for the Federal Government may be made for a period of not more than 20 
years.
    (2) Not later than 90 days after the date of enactment of this 
subsection, the Secretary of Energy, through the Federal Energy 
Management Program, shall publish a standardized renewable energy 
purchase agreement, setting forth commercial terms and conditions, that 
Federal agencies may use to acquire electricity generated from a 
renewable energy resource.
    (3) The Secretary of Energy shall provide technical assistance to 
assist Federal agencies in implementing this subsection.

              Subtitle B--Carbon Capture and Sequestration

SEC. 111. NATIONAL STRATEGY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator, in consultation with the Secretary of 
Energy, the Secretary of the Interior, and the heads of such other 
relevant Federal agencies as the President may designate, shall submit 
to Congress a report setting forth a unified and comprehensive strategy 
to address the key legal, regulatory and other barriers to the 
commercial-scale deployment of carbon capture and sequestration.
    (b) Barriers.--The report under this section shall--
            (1) identify those regulatory, legal, and other gaps and 
        barriers that could be addressed by a Federal agency using 
        existing statutory authority, those, if any, that require 
        Federal legislation, and those that would be best addressed at 
        the State, tribal, or regional level;
            (2) identify regulatory implementation challenges, 
        including those related to approval of State and tribal 
        programs and delegation of authority for permitting; and
            (3) recommend rulemakings, Federal legislation, or other 
        actions that should be taken to further evaluate and address 
        such barriers.

SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

    (a) Coordinated Certification and Permitting Process.--Title VIII 
of the Clean Air Act, as added by section 331 of this Act, is amended 
by adding after section 812 (as added by section 116 of this Act) the 
following:

``SEC. 813. GEOLOGIC SEQUESTRATION SITES.

    ``(a) Coordinated Process.--The Administrator shall establish a 
coordinated approach to certifying and permitting geologic 
sequestration, taking into consideration all relevant statutory 
authorities. In establishing such approach, the Administrator shall--
            ``(1) take into account, and reduce redundancy with, the 
        requirements of section 1421 of the Safe Drinking Water Act (42 
        U.S.C. 300h), as amended by section 112(b) of the American 
        Clean Energy and Security Act of 2009, including the rulemaking 
        for geologic sequestration wells described at 73 Fed. Reg. 
        43491-541 (July 25, 2008); and
            ``(2) to the extent practicable, reduce the burden on 
        certified entities and implementing authorities.
    ``(b) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to protect human health and the environment by minimizing the risk of 
escape to the atmosphere of carbon dioxide injected for purposes of 
geologic sequestration.
    ``(c) Requirements.--The regulations under subsection (b) shall 
include--
            ``(1) a process to obtain certification for geologic 
        sequestration under this section; and
            ``(2) requirements for--
                    ``(A) monitoring, record keeping, and reporting for 
                emissions associated with injection into, and escape 
                from, geologic sequestration sites, taking into account 
                any requirements or protocols developed under section 
                713;
                    ``(B) public participation in the certification 
                process that maximizes transparency;
                    ``(C) the sharing of data between States, Indian 
                tribes, and the Environmental Protection Agency; and
                    ``(D) other elements or safeguards necessary to 
                achieve the purpose set forth in subsection (b).
    ``(d) Report.--Not later than 2 years after the promulgation of 
regulations under subsection (b), and at 3-year intervals thereafter, 
the Administrator shall deliver to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Environment and 
Public Works of the Senate a report on geologic sequestration in the 
United States, and, to the extent relevant, other countries in North 
America. Such report shall include--
            ``(1) data regarding injection, emissions to the 
        atmosphere, if any, and performance of active and closed 
        geologic sequestration sites, including those where enhanced 
        hydrocarbon recovery operations occur;
            ``(2) an evaluation of the performance of relevant Federal 
        environmental regulations and programs in ensuring 
        environmentally protective geologic sequestration practices;
            ``(3) recommendations on how such programs and regulations 
        should be improved or made more effective; and
            ``(4) other relevant information.''.
    (b) Safe Drinking Water Act Standards.--Section 1421 of the Safe 
Drinking Water Act (42 U.S.C. 300h) is amended by inserting after 
subsection (d) the following:
    ``(e) Carbon Dioxide Geologic Sequestration Wells.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, the Administrator shall 
        promulgate regulations under subsection (a) for carbon dioxide 
        geologic sequestration wells.
            ``(2) Financial responsibility.--The regulations referred 
        to in paragraph (1) shall include requirements for maintaining 
        evidence of financial responsibility, including financial 
        responsibility for emergency and remedial response, well 
        plugging, site closure, and post-injection site care. Financial 
        responsibility may be established for carbon dioxide geologic 
        sequestration wells in accordance with regulations promulgated 
        by the Administrator by any one, or any combination, of the 
        following: insurance, guarantee, trust, standby trust, surety 
        bond, letter of credit, qualification as a self-insurer, or any 
        other method satisfactory to the Administrator.''.

SEC. 113. STUDIES AND REPORTS.

    (a) Study of Legal Framework for Geologic Sequestration Sites.--
            (1) Establishment of task force.--As soon as practicable, 
        but not later than 6 months after the date of enactment of this 
        Act, the Administrator shall establish a task force to be 
        composed of an equal number of subject matter experts, 
        nongovernmental organizations with expertise in environmental 
        policy, academic experts with expertise in environmental law, 
        State and tribal officials with environmental expertise, 
        representatives of State and tribal Attorneys General, 
        representatives from the Environmental Protection Agency, the 
        Department of the Interior, the Department of Energy, the 
        Department of Transportation, and other relevant Federal 
        agencies, and members of the private sector, to conduct a study 
        of--
                    (A) existing Federal environmental statutes, State 
                environmental statutes, and State common law that apply 
                to geologic sequestration sites for carbon dioxide, 
                including the ability of such laws to serve as risk 
                management tools;
                    (B) the existing statutory framework, including 
                Federal and State laws, that apply to harm and damage 
                to the environment or public health at closed sites 
                where carbon dioxide injection has been used for 
                enhanced hydrocarbon recovery;
                    (C) the statutory framework, environmental health 
                and safety considerations, implementation issues, and 
                financial implications of potential models for Federal, 
                State, or private sector assumption of liabilities and 
                financial responsibilities with respect to closed 
                geologic sequestration sites;
                    (D) private sector mechanisms, including insurance 
                and bonding, that may be available to manage 
                environmental, health and safety risk from closed 
                geologic sequestration sites; and
                    (E) the subsurface mineral rights, water rights, or 
                property rights issues associated with geologic 
                sequestration of carbon dioxide, including issues 
                specific to Federal lands.
            (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the task force established under 
        paragraph (1) shall submit to Congress a report describing the 
        results of the study conducted under that paragraph including 
        any consensus recommendations of the task force.
    (b) Environmental Statutes.--
            (1) Study.--The Administrator shall conduct a study 
        examining how, and under what circumstances, the environmental 
        statutes for which the Environmental Protection Agency has 
        responsibility would apply to carbon dioxide injection and 
        geologic sequestration activities.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report describing the results of the study conducted 
        under paragraph (1).

SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY 
              DEPLOYMENT PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (2) Distribution utility.--The term ``distribution 
        utility'' means an entity that distributes electricity directly 
        to retail consumers under a legal, regulatory, or contractual 
        obligation to do so.
            (3) Electric utility.--The term ``electric utility'' has 
        the meaning provided by section 3(22) of the Federal Power Act 
        (16 U.S.C. 796(22)).
            (4) Fossil fuel-based electricity.--The term ``fossil fuel-
        based electricity'' means electricity that is produced from the 
        combustion of fossil fuels.
            (5) Fossil fuel.--The term ``fossil fuel'' means coal, 
        petroleum, natural gas or any derivative of coal, petroleum, or 
        natural gas.
            (6) Corporation.--The term ``Corporation'' means the Carbon 
        Storage Research Corporation established in accordance with 
        this section.
            (7) Qualified industry organization.--The term ``qualified 
        industry organization'' means the Edison Electric Institute, 
        the American Public Power Association, the National Rural 
        Electric Cooperative Association, a successor organization of 
        such organizations, or a group of owners or operators of 
        distribution utilities delivering fossil fuel-based electricity 
        who collectively represent at least 20 percent of the volume of 
        fossil fuel-based electricity delivered by distribution 
        utilities to consumers in the United States.
            (8) Retail consumer.--The term ``retail consumer'' means an 
        end-user of electricity.
    (b) Carbon Storage Research Corporation.--
            (1) Establishment.--
                    (A) Referendum.--Qualified industry organizations 
                may conduct, at their own expense, a referendum among 
                the owners or operators of distribution utilities 
                delivering fossil fuel-based electricity for the 
                creation of a Carbon Storage Research Corporation. Such 
                referendum shall be conducted by an independent 
                auditing firm agreed to by the qualified industry 
                organizations. Voting rights in such referendum shall 
                be based on the quantity of fossil fuel-based 
                electricity delivered to consumers in the previous 
                calendar year or other representative period as 
                determined by the Secretary pursuant to subsection (f). 
                Upon approval of those persons representing two-thirds 
                of the total quantity of fossil fuel-based electricity 
                delivered to retail consumers, the Corporation shall be 
                established unless opposed by the State regulatory 
                authorities pursuant to subparagraph (B). All 
                distribution utilities voting in the referendum shall 
                certify to the independent auditing firm the quantity 
                of fossil fuel-based electricity represented by their 
                vote.
                    (B) State regulatory authorities.--Upon its own 
                motion or the petition of a qualified industry 
                organization, each State regulatory authority shall 
                consider its support or opposition to the creation of 
                the Corporation under subparagraph (A). State 
                regulatory authorities may notify the independent 
                auditing firm referred to in subparagraph (A) of their 
                views on the creation of the Corporation within 180 
                days after the date of enactment of this Act. If 40 
                percent or more of the State regulatory authorities 
                submit to the independent auditing firm written notices 
                of opposition, the Corporation shall not be established 
                notwithstanding the approval of the qualified industry 
                organizations as provided in subparagraph (A).
            (2) Termination.--The Corporation shall be authorized to 
        collect assessments and conduct operations pursuant to this 
        section for a 10-year period from the date 6 months after the 
        date of enactment of this Act. After such 10-year period, the 
        Corporation is no longer authorized to collect assessments and 
        shall be dissolved on the date 15 years after such date of 
        enactment, unless the period is extended by an Act of Congress.
            (3) Governance.--The Corporation shall operate as a 
        division or affiliate of the Electric Power Research Institute 
        (referred to in this section as ``EPRI'') and be managed by a 
        Board of not more than 15 voting members responsible for its 
        operations, including compliance with this section. EPRI, in 
        consultation with the Edison Electric Institute, the American 
        Public Power Association and the National Rural Electric 
        Cooperative Association shall appoint the Board members under 
        clauses (i), (ii), and (iii) of subparagraph (A) from among 
        candidates recommended by those organizations. At least a 
        majority of the Board members appointed by EPRI shall be 
        representatives of distribution utilities subject to 
        assessments under subsection (d).
                    (A) Members.--The Board shall include at least one 
                representative of each of the following:
                            (i) Investor-owned utilities.
                            (ii) Utilities owned by a State agency, a 
                        municipality, and an Indian tribe.
                            (iii) Rural electric cooperatives.
                            (iv) Fossil fuel producers.
                            (v) Nonprofit environmental organizations.
                            (vi) Independent generators or wholesale 
                        power providers.
                            (vii) Consumer groups.
                    (B) Nonvoting members.--The Board shall also 
                include as additional nonvoting Members the Secretary 
                of Energy or his designee and 2 representatives of 
                State regulatory authorities as defined in section 
                3(17) of the Public Utility Regulatory Policies Act of 
                1978 (16 U.S.C. 2602(17)), each designated by the 
                National Association of State Regulatory Utility 
                Commissioners from States that are not within the same 
                transmission interconnection.
            (4) Compensation.--Corporation Board members shall receive 
        no compensation for their services, nor shall Corporation Board 
        members be reimbursed for expenses relating to their service.
            (5) Terms.--Corporation Board members shall serve terms of 
        4 years and may serve not more than 2 full consecutive terms. 
        Members filling unexpired terms may serve not more than a total 
        of 8 consecutive years. Former members of the Corporation Board 
        may be reappointed to the Corporation Board if they have not 
        been members for a period of 2 years. Initial appointments to 
        the Corporation Board shall be for terms of 1, 2, 3, and 4 
        years, staggered to provide for the selection of 3 members each 
        year.
            (6) Status of corporation.--The Corporation shall not be 
        considered to be an agency, department, or instrumentality of 
        the United States, and no officer or director or employee of 
        the Corporation shall be considered to be an officer or 
        employee of the United States Government, for purposes of title 
        5 or title 31 of the United States Code, or for any other 
        purpose, and no funds of the Corporation shall be treated as 
        public money for purposes of chapter 33 of title 31, United 
        States Code, or for any other purpose.
    (c) Functions and Administration of the Corporation.--
            (1) In general.--The Corporation shall establish and 
        administer a program to accelerate the commercial availability 
        of carbon dioxide capture and storage technologies and methods, 
        including technologies which capture and store, or capture and 
        convert, carbon dioxide. Under such program competitively 
        awarded grants, contracts, and financial assistance shall be 
        provided and entered into with eligible entities. Except as 
        provided in paragraph (8), the Corporation shall use all funds 
        derived from assessments under subsection (d) to issue grants 
        and contracts to eligible entities.
            (2) Purpose.--The purposes of the grants, contracts, and 
        assistance under this subsection shall be to support 
        commercial-scale demonstrations of carbon capture or storage 
        technology projects capable of advancing the technologies to 
        commercial readiness. Such projects should encompass a range of 
        different coal and other fossil fuel varieties, be 
        geographically diverse, involve diverse storage media, and 
        employ capture or storage, or capture and conversion, 
        technologies potentially suitable either for new or for 
        retrofit applications. The Corporation shall seek, to the 
        extent feasible, to support at least 5 commercial-scale 
        demonstration projects integrating carbon capture and 
        sequestration or conversion technologies.
            (3) Eligible entities.--Entities eligible for grants, 
        contracts or assistance under this subsection may include 
        distribution utilities, electric utilities and other private 
        entities, academic institutions, national laboratories, Federal 
        research agencies, State and tribal research agencies, 
        nonprofit organizations, or consortiums of 2 or more entities. 
        Pilot-scale and similar small-scale projects are not eligible 
        for support by the Corporation. Owners or developers of 
        projects supported by the Corporation shall, where appropriate, 
        share in the costs of such projects.
            (4) Grants for early movers.--Fifty percent of the funds 
        raised under this section shall be provided in the form of 
        grants to electric utilities that had, prior to the award of 
        any grant under this section, committed resources to deploy a 
        large scale electricity generation unit with integrated carbon 
        capture and sequestration or conversion applied to a 
        substantial portion of the unit's carbon dioxide emissions.   
        Grant funds shall be provided to defray costs incurred by such 
        electricity utilities for at least 5 such electricity 
        generation units.
            (5) Administration.--The members of the Board of Directors 
        of the Corporation shall elect a Chairman and other officers as 
        necessary, may establish committees and subcommittees of the 
        Corporation, and shall adopt rules and bylaws for the conduct 
        of business and the implementation of this section. The Board 
        shall appoint an Executive Director and professional support 
        staff who may be employees of the Electric Power Research 
        Institute (EPRI). After consultation with the Technical 
        Advisory Committee established under subsection (j), the 
        Secretary, and the Director of the National Energy Technology 
        Laboratory to obtain advice and recommendations on plans, 
        programs, and project selection criteria, the Board shall 
        establish priorities for grants, contracts, and assistance; 
        publish requests for proposals for grants, contracts, and 
        assistance; and award grants, contracts, and assistance 
        competitively, on the basis of merit, after the establishment 
        of procedures that provide for scientific peer review by the 
        Technical Advisory Committee. The Board shall give preference 
        to applications that reflect the best overall value and 
        prospect for achieving the purposes of the section, such as 
        those which demonstrate an integrated approach for capture and 
        storage or capture and conversion technologies. The Board 
        members shall not participate in making grants or awards to 
        entities with whom they are affiliated.
            (6) Uses of grants, contracts, and assistance.--A grant, 
        contract, or other assistance provided under this subsection 
        may be used to purchase carbon dioxide when needed to conduct 
        tests of carbon dioxide storage sites, in the case of 
        established projects that are storing carbon dioxide emissions, 
        or for other purposes consistent with the purposes of this 
        section. The Corporation shall make publicly available at no 
        cost information learned as a result of projects which it 
        supports financially.
            (7) Intellectual property.--The Board shall establish 
        policies regarding the ownership of intellectual property 
        developed as a result of Corporation grants and other forms of 
        technology support. Such policies shall encourage individual 
        ingenuity and invention.
            (8) Administrative expenses.--Up to 5 percent of the funds 
        collected in any fiscal year under subsection (d) may be used 
        for the administrative expenses of operating the Corporation 
        (not including costs incurred in the determination and 
        collection of the assessments pursuant to subsection (d)).
            (9) Programs and budget.--Before August 1 each year, the 
        Corporation, after consulting with the Technical Advisory 
        Committee and the Secretary and the Director of the 
        Department's National Energy Technology Laboratory and other 
        interested parties to obtain advice and recommendations, shall 
        publish for public review and comment its proposed plans, 
        programs, project selection criteria, and projects to be funded 
        by the Corporation for the next calendar year. The Corporation 
        shall also publish for public review and comment a budget plan 
        for the next calendar year, including the probable costs of all 
        programs, projects, and contracts and a recommended rate of 
        assessment sufficient to cover such costs. The Secretary may 
        recommend programs and activities the Secretary considers 
        appropriate. The Corporation shall include in the first 
        publication it issues under this paragraph a strategic plan or 
        roadmap for the achievement of the purposes of the Corporation, 
        as set forth in paragraph (2).
            (10) Records; audits.--The Corporation shall keep minutes, 
        books, and records that clearly reflect all of the acts and 
        transactions of the Corporation and make public such 
        information. The books of the Corporation shall be audited by a 
        certified public accountant at least once each fiscal year and 
        at such other times as the Corporation may designate. Copies of 
        each audit shall be provided to the Congress, all Corporation 
        board members, all qualified industry organizations, each State 
        regulatory authority and, upon request, to other members of the 
        industry. If the audit determines that the Corporation's 
        practices fail to meet generally accepted accounting principles 
        the assessment collection authority of the Corporation under 
        subsection (d) shall be suspended until a certified public 
        accountant renders a subsequent opinion that the failure has 
        been corrected. The Corporation shall make its books and 
        records available for review by the Secretary or the 
        Comptroller General of the United States.
            (11) Public access.--The Corporation Board's meetings shall 
        be open to the public and shall occur after at least 30 days 
        advance public notice. Meetings of the Board of Directors may 
        be closed to the public where the agenda of such meetings 
        includes only confidential matters pertaining to project 
        selection, the award of grants or contracts, personnel matters, 
        or the receipt of legal advice. The minutes of all meetings of 
        the Corporation shall be made available to and readily 
        accessible by the public.
            (12) Annual report.--Each year the Corporation shall 
        prepare and make publicly available a report which includes an 
        identification and description of all programs and projects 
        undertaken by the Corporation during the previous year. The 
        report shall also detail the allocation or planned allocation 
        of Corporation resources for each such program and project. The 
        Corporation shall provide its annual report to the Congress, 
        the Secretary, each State regulatory authority, and upon 
        request to the public. The Secretary shall, not less than 60 
        days after receiving such report, provide to the President and 
        Congress a report assessing the progress of the Corporation in 
        meeting the objectives of this section.
    (d) Assessments.--
            (1) Amount.--(A) In all calendar years following its 
        establishment, the Corporation shall collect an assessment on 
        distribution utilities for all fossil fuel-based electricity 
        delivered directly to retail consumers (as determined under 
        subsection (f)). The assessments shall reflect the relative 
        carbon dioxide emission rates of different fossil fuel-based 
        electricity, and initially shall be not less than the following 
        amounts for coal, natural gas, and oil:


Fuel type                               Rate of assessment per kilowatt
                                         hour
  Coal................................  $0.00043
  Natural Gas.........................  $0.00022
  Oil.................................  $0.00032.
 

            (B) The Corporation is authorized to adjust the assessments 
        on fossil fuel-based electricity to reflect changes in the 
        expected quantities of such electricity from different fuel 
        types, such that the assessments generate not less than $1.0 
        billion and not more than $1.1 billion annually. The 
        Corporation is authorized to supplement assessments through 
        additional financial commitments.
            (2) Investment of funds.--Pending disbursement pursuant to 
        a program, plan, or project, the Corporation may invest funds 
        collected through assessments under this subsection, and any 
        other funds received by the Corporation, only in obligations of 
        the United States or any agency thereof, in general obligations 
        of any State or any political subdivision thereof, in any 
        interest-bearing account or certificate of deposit of a bank 
        that is a member of the Federal Reserve System, or in 
        obligations fully guaranteed as to principal and interest by 
        the United States.
            (3) Reversion of unused funds.--If the Corporation does not 
        disburse, dedicate or assign 75 percent or more of the 
        available proceeds of the assessed fees in any calendar year 7 
        or more years following its establishment, due to an absence of 
        qualified projects or similar circumstances, it shall reimburse 
        the remaining undedicated or unassigned balance of such fees, 
        less administrative and other expenses authorized by this 
        section, to the distribution utilities upon which such fees 
        were assessed, in proportion to their collected assessments.
    (e)  ERCOT.--
            (1) Assessment, collection, and remittance.--(A) 
        Notwithstanding any other provision of this section, within 
        ERCOT, the assessment provided for in subsection (d) shall be--
                    (i) levied directly on qualified scheduling 
                entities, or their successor entities;
                    (ii) charged consistent with other charges imposed 
                on qualified scheduling entities as a fee on energy 
                used by the load-serving entities; and
                    (iii) collected and remitted by ERCOT to the 
                Corporation in the amounts and in the same manner as 
                set forth in subsection (d).
            (B) The assessment amounts referred to in subparagraph (A) 
        shall be--
                    (i) determined by the amount and types of fossil 
                fuel-based electricity delivered directly to all retail 
                customers in the prior calendar year beginning with the 
                year ending immediately prior to the period described 
                in subsection (b)(2); and
                    (ii) take into account the number of renewable 
                energy credits retired by the load-serving entities 
                represented by a qualified scheduling entity within the 
                prior calendar year.
            (2) Administration expenses.--Up to 1 percent of the funds 
        collected in any fiscal year by ERCOT under the provisions of 
        this subsection may be used for the administrative expenses 
        incurred in the determination, collection and remittance of the 
        assessments to the Corporation.
            (3) Audit.--ERCOT shall provide a copy of its annual audit 
        pertaining to the administration of the provisions of this 
        subsection to the Corporation.
            (4) Definitions.--For the purposes of this subsection:
                    (A) The term ``ERCOT'' means the Electric 
                Reliability Council of Texas.
                    (B) The term ``load-serving entities'' has the 
                meaning adopted by ERCOT Protocols and in effect on the 
                date of enactment of this Act.
                    (C) The term ``qualified scheduling entities'' has 
                the meaning adopted by ERCOT Protocols and in effect on 
                the date of enactment of this Act.
                    (D) The term ``renewable energy credit'' has the 
                meaning as promulgated and adopted by the Public 
                Utility Commission of Texas pursuant to section 
                39.904(b) of the Public Utility Regulatory Act of 1999, 
                and in effect on the date of enactment of this Act.
    (f) Determination of Fossil Fuel-based Electricity Deliveries.--
            (1) Findings.--The Congress finds that:
                    (A) The assessments under subsection (d) are to be 
                collected based on the amount of fossil fuel-based 
                electricity delivered by each distribution utility.
                    (B) Since many distribution utilities purchase all 
                or part of their retail consumer's electricity needs 
                from other entities, it may not be practical to 
                determine the precise fuel mix for the power sold by 
                each individual distribution utility.
                    (C) It may be necessary to use average data, often 
                on a regional basis with reference to Regional 
                Transmission Organization (``RTO'') or NERC regions, to 
                make the determinations necessary for making 
                assessments.
            (2) DOE proposed rule.--The Secretary, acting in close 
        consultation with the Energy Information Administration, shall 
        issue for notice and comment a proposed rule to determine the 
        level of fossil fuel electricity delivered to retail customers 
        by each distribution utility in the United States during the 
        most recent calendar year or other period determined to be most 
        appropriate. Such proposed rule shall balance the need to be 
        efficient, reasonably precise, and timely, taking into account 
        the nature and cost of data currently available and the nature 
        of markets and regulation in effect in various regions of the 
        country. Different methodologies may be applied in different 
        regions if appropriate to obtain the best balance of such 
        factors.
            (3) Final rule.--Within 6 months after the date of 
        enactment of this Act, and after opportunity for comment, the 
        Secretary shall issue a final rule under this subsection for 
        determining the level and type of fossil fuel-based electricity 
        delivered to retail customers by each distribution utility in 
        the United States during the appropriate period. In issuing 
        such rule, the Secretary may consider opportunities and costs 
        to develop new data sources in the future and issue 
        recommendations for the Energy Information Administration or 
        other entities to collect such data. After notice and 
        opportunity for comment the Secretary may, by rule, 
        subsequently update and modify the methodology for making such 
        determinations.
            (4) Annual determinations.--Pursuant to the final rule 
        issued under paragraph (3), the Secretary shall make annual 
        determinations of the amounts and types for each such utility 
        and publish such determinations in the Federal Register. Such 
        determinations shall be used to conduct the referendum under 
        subsection (b) and by the Corporation in applying any 
        assessment under this subsection.
            (5) Rehearing and judicial review.--The owner or operator 
        of any distribution utility that believes that the Secretary 
        has misapplied the methodology in the final rule in determining 
        the amount and types of fossil fuel electricity delivered by 
        such distribution utility may seek rehearing of such 
        determination within 30 days of publication of the 
        determination in the Federal Register. The Secretary shall 
        decide such rehearing petitions within 30 days. The Secretary's 
        determinations following rehearing shall be final and subject 
        to judicial review in the United States Court of Appeals for 
        the District of Columbia.
    (g) Compliance With Corporation Assessments.--The Corporation may 
bring an action in the appropriate court of the United States to compel 
compliance with an assessment levied by the Corporation under this 
section. A successful action for compliance under this subsection may 
also require payment by the defendant of the costs incurred by the 
Corporation in bringing such action.
    (h) Midcourse Review.--Not later than 5 years following 
establishment of the Corporation, the Comptroller General of the United 
States shall prepare an analysis, and report to Congress, assessing the 
Corporation's activities, including project selection and methods of 
disbursement of assessed fees, impacts on the prospects for 
commercialization of carbon capture and storage technologies, adequacy 
of funding, and administration of funds. The report shall also make 
such recommendations as may be appropriate in each of these areas. The 
Corporation shall reimburse the Government Accountability Office for 
the costs associated with performing this midcourse review.
    (i) Recovery of Costs.--
            (1) In general.--A distribution utility whose transmission, 
        delivery, or sales of electric energy are subject to any form 
        of rate regulation shall not be denied the opportunity to 
        recover the full amount of the prudently incurred costs 
        associated with complying with this section, consistent with 
        applicable State or Federal law.
            (2) Ratepayer rebates.--Regulatory authorities that approve 
        cost recovery pursuant to paragraph (1) may order rebates to 
        ratepayers to the extent that distribution utilities are 
        reimbursed undedicated or unassigned balances pursuant to 
        subsection (d)(3).
    (j) Technical Advisory Committee.--
            (1) Establishment.--There is established an advisory 
        committee, to be known as the ``Technical Advisory Committee''.
            (2) Membership.--The Technical Advisory Committee shall be 
        comprised of not less than 7 members appointed by the Board 
        from among academic institutions, national laboratories, 
        independent research institutions, and other qualified 
        institutions. No member of the Committee shall be affiliated 
        with EPRI or with any organization having members serving on 
        the Board. At least one member of the Committee shall be 
        appointed from among officers or employees of the Department of 
        Energy recommended to the Board by the Secretary of Energy.
            (3) Chairperson and vice chairperson.--The Board shall 
        designate one member of the Technical Advisory Committee to 
        serve as Chairperson of the Committee and one to serve as Vice 
        Chairperson of the Committee.
            (4) Compensation.--The Board shall provide compensation to 
        members of the Technical Advisory Committee for travel and 
        other incidental expenses and such other compensation as the 
        Board determines to be necessary.
            (5) Purpose.--The Technical Advisory Committee shall 
        provide independent assessments and technical evaluations, as 
        well as make non-binding recommendations to the Board, 
        concerning Corporation activities, including but not limited to 
        the following:
                    (A) Reviewing and evaluating the Corporation's 
                plans and budgets described in subsection (c)(9), as 
                well as any other appropriate areas, which could 
                include approaches to prioritizing technologies, 
                appropriateness of engineering techniques, monitoring 
                and verification technologies for storage, geological 
                site selection, and cost control measures.
                    (B) Making annual non-binding recommendations to 
                the Board concerning any of the matters referred to in 
                subparagraph (A), as well as what types of investments, 
                scientific research, or engineering practices would 
                best further the goals of the Corporation.
            (6) Public availability.--All reports, evaluations, and 
        other materials of the Technical Advisory Committee shall be 
        made available to the public by the Board, without charge, at 
        time of receipt by the Board.
    (k) Lobbying Restrictions.--No funds collected by the Corporation 
shall be used in any manner for influencing legislation or elections, 
except that the Corporation may recommend to the Secretary and the 
Congress changes in this section or other statutes that would further 
the purposes of this section.
    (l) Davis-Bacon Compliance.--The Corporation shall ensure that 
entities receiving grants, contracts, or other financial support from 
the Corporation for the project activities authorized by this section 
are in compliance with the Davis-Bacon Act (40 U.S.C. 276a-276a-5).

SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION 
              TECHNOLOGIES.

    Part H of title VII of the Clean Air Act (as added by section 321 
of this Act) is amended by adding the following new section after 
section 785:

``SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION 
              TECHNOLOGIES.

    ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
providing for the distribution of emission allowances allocated 
pursuant to section 782(f), pursuant to the requirements of this 
section, to support the commercial deployment of carbon capture and 
sequestration technologies in both electric power generation and 
industrial operations.
    ``(b) Eligibility Criteria.--For an owner or operator of a project 
to be eligible to receive emission allowances under this section, the 
project must--
            ``(1) implement carbon capture and sequestration 
        technology--
                    ``(A) at an electric generating unit that--
                            ``(i) has a nameplate capacity of 200 
                        megawatts or more;
                            ``(ii) in the case of a retrofit 
                        application, applies the carbon capture and 
                        sequestration technology to the flue gas from 
                        at least 200 megawatts of the total nameplate 
                        generating capacity of the unit, provided that 
                        clause (i) shall apply without exception;
                            ``(iii) derives at least 50 percent of its 
                        annual fuel input from coal, petroleum coke, or 
                        any combination of these 2 fuels; and
                            ``(iv) upon implementation of capture and 
                        sequestration technology, will achieve an 
                        emission limit that is at least a 50 percent 
                        reduction in emissions of the carbon dioxide 
                        produced by--
                                    ``(I) the unit, measured on an 
                                annual basis, determined in accordance 
                                with section 812(b)(2); or
                                    ``(II) in the case of retrofit 
                                applications under clause (ii), the 
                                treated portion of flue gas from the 
                                unit, measured on an annual basis, 
                                determined in accordance with section 
                                812(b)(2); or
                    ``(B) at an industrial source that--
                            ``(i) absent carbon capture and 
                        sequestration, would emit greater than 50,000 
                        tons per year of carbon dioxide;
                            ``(ii) upon implementation, will achieve an 
                        emission limit that is at least a 50 percent 
                        reduction in emissions of the carbon dioxide 
                        produced by the emission point, measured on an 
                        annual basis, determined in accordance with 
                        section 812(b)(2); and
                            ``(iii) does not produce a liquid 
                        transportation fuel from a solid fossil-based 
                        feedstock;
            ``(2) geologically sequester carbon dioxide at a site that 
        meets all applicable permitting and certification requirements 
        for geologic sequestration, or, pursuant to such requirements 
        as the Administrator may prescribe by regulation, convert 
        captured carbon dioxide to a stable form that will safely and 
        permanently sequester such carbon dioxide;
            ``(3) meet all other applicable State, tribal, and Federal 
        permitting requirements; and
            ``(4) be located in the United States.
    ``(c) Phase I Distribution to Electric Generating Units.--
            ``(1) Application.--This subsection shall apply only to 
        projects at the first 6 gigawatts of electric generating units, 
        measured in cumulative generating capacity of such units, that 
        receive allowances under this section.
            ``(2) Distribution.--The Administrator shall distribute 
        emission allowances allocated under section 782(f) to the owner 
        or operator of each eligible project at an electric generating 
        unit in a quantity equal to the quotient obtained by dividing--
                    ``(A) the product obtained by multiplying--
                            ``(i) the number of metric tons of carbon 
                        dioxide emissions avoided through capture and 
                        sequestration of emissions by the project, as 
                        determined pursuant to such methodology as the 
                        Administrator shall prescribe by regulation; 
                        and
                            ``(ii) a bonus allowance value, pursuant to 
                        paragraph (3); by
                    ``(B) the average fair market value of an emission 
                allowance during the preceding year.
            ``(3) Bonus allowance values.--
                    ``(A) For a generating unit achieving the capture 
                and sequestration of 85 percent or more of the carbon 
                dioxide that otherwise would be emitted by such unit, 
                the bonus allowance value shall be $90 per ton.
                    ``(B) The Administrator shall by regulation 
                establish a bonus allowance value for each rate of 
                lower capture and sequestration achieved by a 
                generating unit, from a minimum of $50 per ton for a 50 
                percent rate and varying directly with increasing rates 
                of capture and sequestration up to $90 per ton for an 
                85 percent rate.
                    ``(C) For a generating unit that achieves the 
                capture and sequestration of at least 50 percent of the 
                carbon dioxide that otherwise would be emitted by such 
                unit by not later than January 1, 2017, the otherwise 
                applicable bonus allowance value under this paragraph 
                shall be increased by $10, provided that the owner of 
                such unit notifies the Administrator by not later than 
                January 1, 2012, of its intent to achieve such rate of 
                capture and sequestration.
                    ``(D) For a carbon capture and sequestration 
                project sequestering in a geological formation for 
                purposes of enhanced hydrocarbon recovery, the 
                Administrator shall, by regulation, reduce the 
                applicable bonus allowance value under this paragraph 
                to reflect the lower net cost of the project when 
                compared to sequestration into geological formations 
                solely for purposes of sequestration.
                    ``(E) The Administrator shall annually adjust for 
                inflation the bonus allowance values established under 
                this paragraph.
    ``(d) Phase II Distribution to Electric Generating Units.--
            ``(1) Application.--This subsection shall apply only to the 
        distribution of emission allowances for carbon capture and 
        sequestration projects at electric generating units after the 
        capacity threshold identified in subsection (c)(1) is reached.
            ``(2) Regulations.--Not later than 2 years prior to the 
        date on which the capacity threshold identified in subsection 
        (c)(1) is projected to be reached, the Administrator shall 
        promulgate regulations to govern the distribution of emission 
        allowances to the owners or operators of eligible projects 
        under this subsection.
            ``(3) Reverse auctions.--
                    ``(A) In general.--Except as provided in paragraph 
                (4), the regulations promulgated under paragraph (2) 
                shall provide for the distribution of emission 
                allowances to the owners or operators of eligible 
                projects under this subsection through reverse 
                auctions, which shall be held no less frequently than 
                once each calendar year. The Administrator may 
                establish a separate auction for each of no more than 5 
                different project categories, defined on the basis of 
                coal type, capture technology, geological formation 
                type, new unit versus retrofit application, such other 
                factors as the Administrator may prescribe, or any 
                combination thereof. The Administrator may establish 
                appropriate minimum rates of capture and sequestration 
                in implementing this paragraph.
                    ``(B) Auction process.--At each reverse auction--
                            ``(i) the Administrator shall solicit bids 
                        from eligible projects;
                            ``(ii) eligible projects participating in 
                        the auction shall submit a bid including the 
                        desired level of carbon dioxide sequestration 
                        incentive per ton and the estimated quantity of 
                        carbon dioxide that the project will 
                        permanently sequester over 10 years; and
                            ``(iii) the Administrator shall select 
                        bids, within each auction, for the 
                        sequestration amount submitted, beginning with 
                        the eligible project submitting the bid for the 
                        lowest level of sequestration incentive on a 
                        per ton basis and meeting such other 
                        requirements as the Administrator may specify, 
                        until the amount of funds available for the 
                        reverse auction is committed.
                    ``(C) Form of distribution.--The Administrator 
                shall distribute emission allowances to the owners or 
                operators of eligible projects selected through a 
                reverse auction under this paragraph pursuant to a 
                formula equivalent to that described in subsection 
                (c)(2), except that the bonus allowance value that is 
                bid by the entity shall be substituted for the bonus 
                allowance values set forth in subsection (c)(3).
            ``(4) Alternative distribution method.--
                    ``(A) In general.--If the Administrator determines 
                that reverse auctions would not provide for efficient 
                and cost-effective commercial deployment of carbon 
                capture and sequestration technologies, the 
                Administrator may instead, through regulations 
                promulgated under paragraph (2) or (5), prescribe a 
                schedule for the award of bonus allowances to the 
                owners or operators of eligible projects under this 
                subsection, in accordance with the requirements of this 
                paragraph.
                    ``(B) Multiple tranches.--The Administrator shall 
                divide emission allowances available for distribution 
                to the owners or operators of eligible projects into a 
                series of tranches, each supporting the deployment of a 
                specified quantity of cumulative electric generating 
                capacity utilizing carbon capture and sequestration 
                technology, each of which shall not be greater than 6 
                gigawatts.
                    ``(C) Method of distribution.--The Administrator 
                shall distribute emission allowances within each 
                tranche, on a first-come, first-served basis--
                            ``(i) based on the date of full-scale 
                        operation of capture and sequestration 
                        technology; and
                            ``(ii) pursuant to a formula, similar to 
                        that set forth in subsection (c)(2) (except 
                        that the Administrator shall prescribe bonus 
                        allowance values different than those set forth 
                        in subsection (c)(3)), establishing the number 
                        of allowances to be distributed per ton of 
                        carbon dioxide sequestered by the project.
                    ``(D) Requirements.--For each tranche established 
                pursuant to subparagraph (B), the Administrator shall 
                establish a schedule for distributing emission 
                allowances that--
                            ``(i) is based on a sliding scale that 
                        provides higher bonus allowance values for 
                        projects achieving higher rates of capture and 
                        sequestration;
                            ``(ii) for each capture and sequestration 
                        rate, establishes a bonus allowance value that 
                        is lower than that established for such rate in 
                        the previous tranche (or, in the case of the 
                        first tranche, than that established for such 
                        rate under subsection (c)(3)); and
                            ``(iii) may establish different bonus 
                        allowance levels for no more than 5 different 
                        project categories, defined by coal type, 
                        capture technology, geological formation type, 
                        new unit versus retrofit application, such 
                        other factors as the Administrator may 
                        prescribe, or any combination thereof.
                    ``(E) Criteria for establishing bonus allowance 
                values.--In setting bonus allowance values under this 
                paragraph, the Administrator shall seek to cover no 
                more than the reasonable incremental capital and 
                operating costs of a project that are attributable to 
                implementation of carbon capture, transportation, and 
                sequestration technologies, taking into account--
                            ``(i) the reduced cost of compliance with 
                        section 722 of this Act;
                            ``(ii) the reduced cost associated with 
                        sequestering in a geological formation for 
                        purposes of enhanced hydrocarbon recovery when 
                        compared to sequestration into geological 
                        formations solely for purposes of 
                        sequestration;
                            ``(iii) the relevant factors defining the 
                        project category; and
                            ``(iv) such other factors as the 
                        Administrator determines are appropriate.
            ``(5) Revision of regulations.--The Administrator shall 
        review, and as appropriate revise, the applicable regulations 
        under this subsection no less frequently than every 8 years.
    ``(e) Limits for Certain Electric Generating Units.--
            ``(1) Definitions.--For purposes of this subsection, the 
        terms `covered EGU' and `initially permitted' shall have the 
        meaning given those terms in section 812 of this Act.
            ``(2) Covered egus initially permitted from 2009 through 
        2014.--For a covered EGU that is initially permitted on or 
        after January 1, 2009, and before January 1, 2015, the 
        Administrator shall reduce the quantity of emission allowances 
        that the owner or operator of such covered EGU would otherwise 
        be eligible to receive under this section as follows:
                    ``(A) In the case of a unit commencing operation on 
                or before January 1, 2019, if the date in clause 
                (ii)(I) is earlier than the date in clause (ii)(II), by 
                the product of--
                            ``(i) 20 percent; and
                            ``(ii) the number of years, if any, that 
                        have elapsed between--
                                    ``(I) the earlier of January 1, 
                                2020, or the date that is 5 years after 
                                the commencement of operation of such 
                                covered EGU; and
                                    ``(II) the first year that such 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limit that is at 
                                least a 50 percent reduction in 
                                emissions of the carbon dioxide 
                                produced by the unit, measured on an 
                                annual basis, as determined in 
                                accordance with section 812(b)(2).
                    ``(B) In the case of a unit commencing operation 
                after January 1, 2019, by the product of--
                            ``(i) 20 percent; and
                            ``(ii) the number of years between--
                                    ``(I) the commencement of operation 
                                of such covered EGU; and
                                    ``(II) the first year that such 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limit that is at 
                                least a 50 percent reduction in 
                                emissions of the carbon dioxide 
                                produced by the unit, measured on an 
                                annual basis, as determined in 
                                accordance with section 812(b)(2).
            ``(3) Covered egus initially permitted from 2015 through 
        2019.--The owner or operator of a covered EGU that is initially 
        permitted on or after January 1, 2015, and before January 1, 
        2020, shall be ineligible to receive emission allowances 
        pursuant to this section if such unit, upon commencement of 
        operations (and thereafter), does not achieve and maintain an 
        emission limit that is at least a 50 percent reduction in 
        emissions of the carbon dioxide produced by the unit, measured 
        on an annual basis, as determined in accordance with section 
        812(b)(2).
    ``(f) Industrial Sources.--
            ``(1) Allowances.--The Administrator may distribute not 
        more than 15 percent of the allowances allocated under section 
        782(f) for any vintage year to the owners or operators of 
        eligible industrial sources to support the commercial-scale 
        deployment of carbon capture and sequestration technologies at 
        such sources.
            ``(2) Distribution.--The Administrator shall, by 
        regulation, prescribe requirements for the distribution of 
        emission allowances to the owners or operators of industrial 
        sources under this subsection, based on a bonus allowance 
        formula that awards allowances to qualifying projects on the 
        basis of tons of carbon dioxide captured and permanently 
        sequestered. The Administrator may provide for the distribution 
        of emission allowances pursuant to--
                    ``(A) a reverse auction method, similar to that 
                described under subsection (d)(3), including the use of 
                separate auctions for different project categories; or
                    ``(B) an incentive schedule, similar to that 
                described under subsection (d)(4), which shall ensure 
                that incentives are set so as to satisfy the 
                requirement described in subsection (d)(4)(E).
            ``(3) Revision of regulations.--The Administrator shall 
        review, and as appropriate revise, the applicable regulations 
        under this subsection no less frequently than every 8 years.
    ``(g) Limitations.--Allowances may be distributed under this 
section only for tons of carbon dioxide emissions that have already 
been captured and sequestered. A qualifying project may receive annual 
emission allowances under this section only for the first 10 years of 
operation. No greater than 72 gigawatts of total cumulative generating 
capacity (including industrial applications, measured by such 
equivalent metric as the Administrator may designate) may receive 
emission allowances under this section. Upon reaching the limit 
described in the preceding sentence, any emission allowances that are 
allocated for carbon capture and sequestration deployment under section 
782(f) and are not yet obligated under this section shall be treated as 
allowances not designated for distribution for purposes of section 
782(r).
    ``(h) Exhaustion of Account and Annual Roll-over of Surplus 
Allowances.--
            ``(1) In distributing emission allowances under this 
        section, the Administrator shall ensure that qualifying 
        projects receiving allowances receive distributions for 10 
        years.
            ``(2) If the Administrator determines that the emission 
        allowances allocated under section 782(f) with a vintage year 
        that matches the year of distribution will be exhausted once 
        the estimated full 10-year distributions will be provided to 
        current eligible participants, the Administrator shall provide 
        to new eligible projects allowances from vintage years after 
        the year of the distribution.
    ``(i) Retrofit Applications.--(1) In calculating bonus allowance 
values for retrofit applications eligible under subsection 
(b)(1)(A)(ii) and (iv)(II), the Administrator shall apply the required 
capture rates with respect to the treated portion of flue gas from the 
unit.
    ``(2) No additional projects shall be eligible for allowances under 
subsection (b)(1)(A)(ii) and (iv)(II) as of such time as the 
Administrator reports, pursuant to section 812(d), that carbon capture 
and sequestration retrofit projects at electric generating units that 
are eligible for allowances under this section have been applied, in 
the aggregate, to the flue gas generated by 1 gigawatt of total 
cumulative generating capacity. The limitation in the preceding 
sentence shall not apply to projects that meet the eligibility criteria 
in subsection (b)(1)(A)(iv)(I).
    ``(j) Davis-Bacon Compliance.--All laborers and mechanics employed 
on projects funded directly by or assisted in whole or in part by this 
section through the use of emission allowances shall be paid wages at 
rates not less than those prevailing on projects of a character similar 
in the locality as determined by the Secretary of Labor in accordance 
with subchapter IV, chapter 31, part A of subtitle II of title 40, 
United States Code. With respect to the labor standards specified in 
this subsection, the Secretary of Labor shall have the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States 
Code.''.

SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

    (a) In General.--Title VIII of the Clean Air Act (as added by 
section 331 of this Act) is amended by adding the following new section 
after section 811:

``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

    ``(a) Definitions.--For purposes of this section:
            ``(1) Covered egu.--The term `covered EGU' means a utility 
        unit that is required to have a permit under section 503(a) and 
        is authorized under state or federal law to derive at least 30 
        percent of its annual heat input from coal, petroleum coke, or 
        any combination of these fuels.
            ``(2) Initially permitted.--The term `initially permitted' 
        means that the owner or operator has received a Clean Air Act 
        preconstruction approval or permit, for the covered EGU as a 
        new (not a modified) source, but administrative review or 
        appeal of such approval or permit has not been exhausted. A 
        subsequent modification of any such approval or permits, 
        ongoing administrative or court review, appeals, or challenges, 
        or the existence or tolling of any time to pursue further 
        review, appeals, or challenges shall not affect the date on 
        which a covered EGU is considered to be initially permitted 
        under this paragraph.
    ``(b) Standards.--(1) A covered EGU that is initially permitted on 
or after January 1, 2020, shall achieve an emission limit that is a 65 
percent reduction in emissions of the carbon dioxide  produced by the  
unit, as measured on an annual basis, or meet such more stringent 
standard as the Administrator may establish pursuant to subsection (c).
    ``(2) A covered EGU that is initially permitted after January 1, 
2009, and before January 1, 2020, shall, by the applicable compliance 
date established under this paragraph, achieve an emission limit that 
is a 50 percent reduction in emissions of the carbon dioxide produced 
by the  unit, as measured on an annual basis. Compliance with the 
requirement set forth in this paragraph shall be required by the 
earliest of the following:
            ``(A) Four years after the date the Administrator has 
        published pursuant to subsection (d) a report that there are in 
        commercial operation in the United States electric generating 
        units or other stationary sources equipped with carbon capture 
        and sequestration technology that, in the aggregate--
                    ``(i) have a total of at least 4 gigawatts of 
                nameplate generating capacity of which--
                            ``(I) at least 3 gigawatts must be electric 
                        generating units; and
                            ``(II) up to 1 gigawatt may be industrial 
                        applications, for which capture and 
                        sequestration of 3 million tons of carbon 
                        dioxide per year on an aggregate annualized 
                        basis shall be considered equivalent to 1 
                        gigawatt;
                    ``(ii) include at least 2 electric generating 
                units, each with a nameplate generating capacity of 250 
                megawatts or greater, that capture, inject, and 
                sequester carbon dioxide into geologic formations other 
                than oil and gas fields; and
                    ``(iii) are capturing and sequestering in the 
                aggregate at least 12 million tons of carbon dioxide 
                per year, calculated on an aggregate annualized basis.
            ``(B) January 1, 2025.
    ``(3) If the deadline for compliance with paragraph (2) is January 
1, 2025, the Administrator may extend the deadline for compliance by a 
covered EGU by up to 18 months if the Administrator makes a 
determination, based on a showing by the owner or operator of the unit, 
that it will be technically infeasible for the unit to meet the 
standard by the deadline. The owner or operator must submit a request 
for such an extension by no later than January 1, 2022, and the 
Administrator shall provide for public notice and comment on the 
extension request.
    ``(c) Review and Revision of Standards.--Not later than 2025 and at 
5-year intervals thereafter, the Administrator shall review the 
standards for new covered EGUs under this section and shall, by rule, 
reduce the maximum carbon dioxide emission rate for new covered EGUs to 
a rate which reflects the degree of emission limitation achievable 
through the application of the best system of emission reduction which 
(taking into account the cost of achieving such reduction and any 
nonair quality health and environmental impact and energy requirements) 
the Administrator determines has been adequately demonstrated.
    ``(d)  Reports.--Not later than the date 18 months after the date 
of enactment of this title and semiannually thereafter, the 
Administrator shall publish a report on the nameplate capacity of units 
(determined pursuant to subsection (b)(2)(A)) in commercial operation 
in the United States equipped with carbon capture and sequestration 
technology, including the information described in subsection (b)(2)(A) 
(including the cumulative generating capacity to which carbon capture 
and sequestration retrofit projects meeting the criteria described in 
section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the 
quantities of carbon dioxide captured and sequestered by such 
projects).
    ``(e) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to carry out the requirements of this section.''.

                    Subtitle C--Clean Transportation

SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

    (a) Amendment of PURPA.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(20) Plug-in electric drive vehicle infrastructure.--
                    ``(A) Utility plan for infrastructure.--Each 
                electric utility shall develop a plan to support the 
                use of plug-in electric drive vehicles, including 
                heavy-duty hybrid electric vehicles. The plan may 
                provide for deployment of electrical charging stations 
                in public or private locations, including street 
                parking, parking garages, parking lots, homes, gas 
                stations, and highway rest stops. Any such plan may 
                also include--
                            ``(i) battery exchange, fast charging 
                        infrastructure and other services;
                            ``(ii) triggers for infrastructure 
                        deployment based upon market penetration of 
                        plug-in electric drive vehicles; and
                            ``(iii) such other elements as the State 
                        determines necessary to support plug-in 
                        electric drive vehicles.
                Each plan under this paragraph shall provide for the 
                deployment of the charging infrastructure or other 
                infrastructure necessary to adequately support the use 
                of plug-in electric drive vehicles.
                    ``(B) Support requirements.--Each State regulatory 
                authority (in the case of each electric utility for 
                which it has ratemaking authority) and each utility (in 
                the case of a nonregulated utility) shall--
                            ``(i) require that charging infrastructure 
                        deployed is interoperable with products of all 
                        auto manufacturers to the extent possible; and
                            ``(ii) consider adopting minimum 
                        requirements for deployment of electrical 
                        charging infrastructure and other appropriate 
                        requirements necessary to support the use of 
                        plug-in electric drive vehicles.
                    ``(C) Cost recovery.--Each State regulatory 
                authority (in the case of each electric utility for 
                which it has ratemaking authority) and each utility (in 
                the case of a nonregulated utility) shall consider 
                whether, and to what extent, to allow cost recovery for 
                plans and implementation of plans.
                    ``(D) Smart grid integration.--The State regulatory 
                authority (in the case of each electric utility for 
                which it has ratemaking authority) and each utility (in 
                the case of a nonregulated utility) shall, in 
                accordance with regulations issued by the Federal 
                Energy Regulatory Commission pursuant to section 
                1305(d) of the Energy Independence and Security Act of 
                2007--
                            ``(i) establish any appropriate protocols 
                        and standards for integrating plug-in electric 
                        drive vehicles into an electrical distribution 
                        system, including Smart Grid systems and 
                        devices as described in title XIII of the 
                        Energy Independence and Security Act of 2007;
                            ``(ii) include, to the extent feasible, the 
                        ability for each plug-in electric drive vehicle 
                        to be identified individually and to be 
                        associated with its owner's electric utility 
                        account, regardless of the location that the 
                        vehicle is plugged in, for purposes of 
                        appropriate billing for any electricity 
                        required to charge the vehicle's batteries as 
                        well as any crediting for electricity provided 
                        to the electric utility from the vehicle's 
                        batteries; and
                            ``(iii) review the determination made in 
                        response to section 1252 of the Energy Policy 
                        Act of 2005 in light of this section, including 
                        whether time-of-use pricing should be employed 
                        to enable the use of plug-in electric drive 
                        vehicles to contribute to meeting peak-load and 
                        ancillary service power needs.''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding the following at the end thereof:
    ``(7)(A) Not later than 3 years after the date of enactment of this 
paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) and each 
nonregulated utility shall commence the consideration referred to in 
section 111, or set a hearing date for consideration, with respect to 
the standard established by paragraph (20) of section 111(d).
    ``(B) Not later than 4 years after the date of enactment of the 
this paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the consideration, and 
shall make the determination, referred to in section 111 with respect 
to the standard established by paragraph (20) of section 111(d).''.
            (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
        amended by adding the following at the end: ``In the case of 
        the standards established by paragraph (20) of section 111(d), 
        the reference contained in this subsection to the date of 
        enactment of this Act shall be deemed to be a reference to the 
        date of enactment of such paragraph.''.
            (3) Prior state actions.--Section 112(d) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is 
        amended by striking ``(19)'' and inserting ``(20)'' before ``of 
        section 111(d)''.

SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

    (a) Deployment Program.--The Secretary of Energy shall establish a 
program to deploy and integrate plug-in electric drive vehicles into 
the electricity grid in multiple regions. In carrying out the program, 
the Secretary may provide financial assistance described under 
subsection (d), consistent with the goals under subsection (b). The 
Secretary shall select regions based upon applications for assistance 
received pursuant to subsection (c).
    (b) Goals.--The goals of the program established pursuant to 
subsection (a) shall be--
            (1) to demonstrate the viability of a vehicle-based 
        transportation system that is not overly dependent on petroleum 
        as a fuel and contributes to lower carbon emissions than a 
        system based on conventional vehicles;
            (2) to facilitate the integration of advanced vehicle 
        technologies into electricity distribution areas to improve 
        system performance and reliability;
            (3) to demonstrate the potential benefits of coordinated 
        investments in vehicle electrification on personal mobility and 
        a regional grid;
            (4) to demonstrate protocols and standards that facilitate 
        vehicle integration into the grid; and
            (5) to investigate differences in each region and 
        regulatory environment regarding best practices in implementing 
        vehicle electrification.
    (c) Applications.--Any State, Indian tribe, or local government (or 
group of State, Indian tribe, or local governments) may apply to the 
Secretary of Energy for financial assistance in furthering the regional 
deployment and integration into the electricity grid of plug-in 
electric drive vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology providers, car 
sharing companies or organizations, or other persons or entities.
    (d) Use of Funds.--Pursuant to applications received under 
subsection (c), the Secretary may make financial assistance available 
to any applicant or joint sponsor of the application to be used for any 
of the following:
            (1) Assisting persons located in the regional deployment 
        area, including fleet owners, in the purchase of new plug-in 
        electric drive vehicles by offsetting in whole or in part the 
        incremental cost of such vehicles above the cost of comparable 
        conventionally fueled vehicles.
            (2) Supporting the use of plug-in electric drive vehicles 
        by funding projects for the deployment of any of the following:
                    (A) Electrical charging infrastructure for plug-in 
                electric drive vehicles, including battery exchange, 
                fast charging infrastructure, and other services, in 
                public or private locations, including street parking, 
                parking garages, parking lots, homes, gas stations, and 
                highway rest stops.
                    (B) Smart Grid equipment and infrastructure, as 
                described in title XIII of the Energy Independence and 
                Security Act of 2007, to facilitate the charging and 
                integration of plug-in electric drive vehicles.
            (3) Such other projects as the Secretary determines 
        appropriate to support the large-scale deployment of plug-in 
        electric drive vehicles in regional deployment areas.
    (e) Program Requirements.--The Secretary, in consultation with the 
Administrator and the Secretary of Transportation, shall determine 
design elements and requirements of the program established pursuant to 
subsection (a), including--
            (1) the type of financial mechanism with which to provide 
        financial assistance;
            (2) criteria for evaluating applications submitted under 
        subsection (c), including the anticipated ability to promote 
        deployment and market penetration of vehicles that are less 
        dependent on petroleum as a fuel source; and
            (3) reporting requirements for entities that receive 
        financial assistance under this section, including a 
        comprehensive set of performance data characterizing the 
        results of the deployment program.
    (f) Information Clearinghouse.--The Secretary shall, as part of the 
program established pursuant to subsection (a), collect and make 
available to the public information regarding the cost, performance, 
and other technical data regarding the deployment and integration of 
plug-in electric drive vehicles.
    (g) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary.

SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

    (a) Vehicle Manufacturing Assistance Program.--The Secretary of 
Energy shall establish a program to provide financial assistance to 
automobile manufacturers to facilitate the manufacture of plug-in 
electric drive vehicles, as defined in section 131(a)(5) of the Energy 
Independence and Security Act of 2007, that are developed and produced 
in the United States.
    (b) Financial Assistance.--The Secretary of Energy may provide 
financial assistance to an automobile manufacturer under the program 
established pursuant to subsection (a) for the reconstruction or 
retooling of facilities for the manufacture of plug-in electric drive 
vehicles or batteries for such vehicles that are developed and produced 
in the United States.
    (c) Coordination With Regional Deployment.--The Secretary may 
provide financial assistance under subsection (b) in conjunction with 
the award of financial assistance under the large scale vehicle 
electrification program established pursuant to section 122 of this 
Act.
    (d) Program Requirements.--The Secretary shall determine design 
elements and requirements of the program established pursuant to 
subsection (a), including--
            (1) the type of financial mechanism with which to provide 
        financial assistance;
            (2) criteria, in addition to the criteria described under 
        subsection (e), for evaluating applications for financial 
        assistance; and
            (3) reporting requirements for automobile manufacturers 
        that receive financial assistance under this section.
    (e) Criteria.--In selecting recipients of financial assistance from 
among applicant automobile manufacturers, the Secretary shall give 
preference to proposals that--
            (1) are most likely to be successful; and
            (2) are located in local markets that have the greatest 
        need for the facility.
    (f) Reports.--The Secretary shall annually submit to Congress a 
report on the program established pursuant to this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 124. INVESTMENT IN CLEAN VEHICLES.

    (a) Definitions.--In this section:
            (1) Advanced technology vehicles and qualifying 
        components.--The terms ``advanced technology vehicles'' and 
        ``qualifying components'' shall have the definition of such 
        terms in section 136 of the Energy Independence and Security 
        Act of 2007, except that for purposes of this section, the 
        average base year as described in such section 136(a)(1)(C) 
        shall be the following:
                    (A) In each of the years 2012 through 2016, model 
                year 2009.
                    (B) In 2017, the Administrator shall, 
                notwithstanding such section 136(a)(1)(C), determine an 
                appropriate baseline based on technological and 
                economic feasibility.
            (2) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' shall have the definition of such term 
        in section 131 of the Energy Independence and Security Act of 
        2007.
    (b) Distribution of Allowances.--The Administrator shall, in 
accordance with this section, distribute emission allowances allocated 
pursuant to section 782(i) of the Clean Air Act not later than 
September 30 of 2012 and each calendar year thereafter through 2025.
    (c) Plug-in Electric Drive Vehicle Manufacturing and Deployment.--
            (1) In general.--The Administrator shall, at the direction 
        of the Secretary of Energy, provide emission allowances 
        allocated pursuant to section 782(i) to applicants, joint 
        sponsors and automobile manufacturers pursuant to sections 122 
        and 123 of this Act.
            (2) Annual amount.--In each of the years 2012 through 2017, 
        one-quarter of the portion of the emission allowances allocated 
        pursuant to section 782(i) of the Clean Air Act shall be 
        available to carry out paragraph (1) such that--
                    (A) one-eighth of the portion shall be available to 
                carry out section 122; and
                    (B) one-eighth of the portion shall be available to 
                carry out section 123.
            (3) Preference.--In directing the provision of emission 
        allowances under this subsection to carry out section 122, the 
        Secretary shall give preference to applications under section 
        122(c) that are jointly sponsored by one or more automobile 
        manufacturers.
            (4) Multi-year commitments.--The Administrator shall commit 
        to providing emission allowances to an applicant, joint 
        sponsor, or automobile manufacturer for up to five consecutive 
        years if--
                    (A) an application under section 122 or 123 of this 
                Act requests a multi-year commitment;
                    (B) such application meets the criteria for support 
                established by the Secretary of Energy under section 
                122 or 123 of this Act;
                    (C) the Administrator confirms to the Secretary 
                that emission allowances will be available for a multi-
                year commitment;
                    (D) the Secretary of Energy determines that a 
                multi-year commitment for such application will advance 
                the goals of section 122 or 123; and
                    (E) the Secretary of Energy directs the 
                Administrator to make a multi-year commitment.
            (5) Insufficient applications.--If, in any year, emission 
        allowances available under paragraph (2) cannot be provided 
        because of insufficient numbers of submitted applications that 
        meet the criteria for support established by the Secretary of 
        Energy under section 122 or 123 of this Act, the remaining 
        emission allowances shall be distributed according to 
        subsection (d).
    (d) Advanced Technology Vehicles.--
            (1) In general.--The Administrator shall, at the direction 
        of the Secretary of Energy, provide any emission allowances 
        allocated pursuant to section 782(i) of the Clean Air Act that 
        are not provided under subsection (c) to automobile 
        manufacturers and component suppliers to pay not more than 30 
        percent of the cost of--
                    (A) reequipping, expanding, or establishing a 
                manufacturing facility in the United States to 
                produce--
                            (i) qualifying advanced technology 
                        vehicles; or
                            (ii) qualifying components; and
                    (B) engineering integration performed in the United 
                States of qualifying vehicles and qualifying 
                components.
            (2) Preference.--In directing the provision of emission 
        allowances under this subsection during the years 2012 through 
        2017, the Secretary shall give preference to applications for 
        projects that save the maximum number of gallons of fuel.

SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE LOANS.

    Section 136(d)(1) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17013(d)(1)) is amended by striking ``$25,000,000,000'' 
and inserting ``$50,000,000,000''.

SEC. 126. DEFINITION OF RENEWABLE BIOMASS.

    (a) In General.--Section 211(o)(1)(I) of the Clean Air Act (42 
U.S.C. 7545(o)(1)(I)) is amended to read as follows:
                    ``(I) Renewable biomass.--The term `renewable 
                biomass' means any of the following:
                            ``(i) Materials, pre-commercial thinnings, 
                        or removed invasive species from National 
                        Forest System land and public lands (as defined 
                        in section 103 of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1702)), 
                        including those that are byproducts of 
                        preventive treatments (such as trees, wood, 
                        brush, thinnings, chips, and slash), that are 
                        removed as part of a federally recognized 
                        timber sale, or that are removed to reduce 
                        hazardous fuels, to reduce or contain disease 
                        or insect infestation, or to restore ecosystem 
                        health, and that are--
                                    ``(I) not from components of the 
                                National Wilderness Preservation 
                                System, Wilderness Study Areas, 
                                Inventoried Roadless Areas, old growth 
                                stands, late-successional stands 
                                (except for dead, severely damaged, or 
                                badly infested trees), components of 
                                the National Landscape Conservation 
                                System, National Monuments, National 
                                Conservation Areas, Designated 
                                Primitive Areas, or Wild and Scenic 
                                Rivers corridors;
                                    ``(II) harvested in environmentally 
                                sustainable quantities, as determined 
                                by the appropriate Federal land 
                                manager; and
                                    ``(III) harvested in accordance 
                                with Federal and State law, and 
                                applicable land management plans.
                            ``(ii) Any organic matter that is available 
                        on a renewable or recurring basis from non-
                        Federal land or land belonging to an Indian or 
                        Indian tribe that is held in trust by the 
                        United States or subject to a restriction 
                        against alienation imposed by the United 
                        States, including--
                                    ``(I) renewable plant material, 
                                including--
                                            ``(aa) feed grains;
                                            ``(bb) other agricultural 
                                        commodities;
                                            ``(cc) other plants and 
                                        trees; and
                                            ``(dd) algae; and
                                    ``(II) waste material, including--
                                            ``(aa) crop residue;
                                            ``(bb) other vegetative 
                                        waste material (including wood 
                                        waste and wood residues);
                                            ``(cc) animal waste and 
                                        byproducts (including fats, 
                                        oils, greases, and manure);
                                            ``(dd) construction waste;
                                            ``(ee) food waste and yard 
                                        waste; and
                                            ``(ff) the non-fossil 
                                        biogenic portion of municipal 
                                        solid waste and construction, 
                                        demolition, and disaster 
                                        debris.
                            ``(iii) Residues and byproducts from wood, 
                        pulp, or paper products facilities.''.
    (b) Reduction.--The last sentence of section 211(o)(7)(D) of the 
Clean Air Act (42 U.S.C. 7545(o)(7)(D)) is amended to read as follows: 
``For any calendar year in which the Administrator makes such a 
reduction, the Administrator shall also reduce the applicable volume of 
renewable fuel and advanced biofuels requirement established under 
paragraph (2)(B) by the same volume.''.

SEC. 127. OPEN FUEL STANDARD.

    (a) Findings.--The Congress finds that--
            (1) the status of oil as a strategic commodity, which 
        derives from its domination of the transportation sector, 
        presents a clear and present danger to the United States;
            (2) in a prior era, when salt was a strategic commodity, 
        salt mines conferred national power and wars were fought over 
        the control of such mines;
            (3) technology, in the form of electricity and 
        refrigeration, decisively ended salt's monopoly of meat 
        preservation and greatly reduced its strategic importance;
            (4) fuel competition and consumer choice would similarly 
        serve to end oil's monopoly in the transportation sector and 
        strip oil of its strategic status;
            (5) the current closed fuel market has allowed a cartel of 
        petroleum exporting countries to inflate fuel prices, 
        effectively imposing a harmful tax on the economy of the United 
        States;
            (6) much of the inflated petroleum revenues the oil cartel 
        earns at the expense of the people of the United States are 
        used for purposes antithetical to the interests of the United 
        States and its allies;
            (7) alcohol fuels, including ethanol and methanol, could 
        potentially provide significant supplies of additional fuels 
        that could be produced in the United States and in many other 
        countries in the Western Hemisphere that are friendly to the 
        United States;
            (8) alcohol fuels can only play a major role in securing 
        the energy independence of the United States if a substantial 
        portion of vehicles in the United States are capable of 
        operating on such fuels;
            (9) it is not in the best interest of United States 
        consumers or the United States Government to be constrained to 
        depend solely upon petroleum resources for vehicle fuels if 
        alcohol fuels are potentially available;
            (10) existing technology, in the form of flexible fuel 
        vehicles, allows internal combustion engine cars and trucks to 
        be produced at little or no additional cost, which are capable 
        of operating on conventional gasoline, alcohol fuels, or any 
        combination of such fuels, as availability or cost advantage 
        dictates, providing a platform on which fuels can compete;
            (11) the necessary distribution system for such alcohol 
        fuels will not be developed in the United States until a 
        substantial fraction of the vehicles in the United States are 
        capable of operating on such fuels;
            (12) the establishment of such a vehicle fleet and 
        distribution system would provide a large market that would 
        mobilize private resources to substantially advance the 
        technology and expand the production of alcohol fuels in the 
        United States and abroad;
            (13) the United States has an urgent national security 
        interest to develop alcohol fuels technology, production, and 
        distribution systems as rapidly as possible;
            (14) new cars sold in the United States that are equipped 
        with an internal combustion engine should allow for fuel 
        competition by being flexible fuel vehicles, and new diesel 
        cars should be capable of operating on biodiesel; and
            (15) such an open fuel standard would help to protect the 
        United States economy from high and volatile oil prices and 
        from the threats caused by global instability, terrorism, and 
        natural disaster.
    (b) Open Fuel Standard for Transportation.--(1) Chapter 329 of 
title 49, United States Code, is amended by adding at the end the 
following:
``Sec. 32920. Open fuel standard for transportation
    ``(a) Definitions.--In this section:
            ``(1) E85.--The term `E85' means a fuel mixture containing 
        85 percent ethanol and 15 percent gasoline by volume.
            ``(2) Flexible fuel automobile.--The term `flexible fuel 
        automobile' means an automobile that has been warranted by its 
        manufacturer to operate on gasoline, E85, and M85.
            ``(3) Fuel choice-enabling automobile.--The term `fuel 
        choice-enabling automobile' means--
                    ``(A) a flexible fuel automobile; or
                    ``(B) an automobile that has been warranted by its 
                manufacturer to operate on biodiesel.
            ``(4) Light-duty automobile.--The term `light-duty 
        automobile' means--
                    ``(A) a passenger automobile; or
                    ``(B) a non-passenger automobile.
            ``(5) Light-duty automobile manufacturer's annual covered 
        inventory.--The term `light-duty automobile manufacturer's 
        annual covered inventory' means the number of light-duty 
        automobiles powered by an internal combustion engine that a 
        manufacturer, during a given calendar year, manufactures in the 
        United States or imports from outside of the United States for 
        sale in the United States.
            ``(6) M85.--The term `M85' means a fuel mixture containing 
        85 percent methanol and 15 percent gasoline by volume.
    ``(b) Open Fuel Standard for Transportation.--
            ``(1) In general.--The Secretary may promulgate regulations 
        to require each light-duty automobile manufacturer's annual 
        covered inventory to be comprised of a minimum percentage of 
        fuel-choice enabling automobiles, with sufficient lead time, if 
        the Secretary, in coordination with the Secretary of Energy and 
        the Administrator of the Environmental Protection Agency, 
        determines such requirement is a cost-effective way to achieve 
        the Nation's energy independence and environmental objectives. 
        The cost-effective determination shall consider the future 
        availability of both alternative fuel supply and infrastructure 
        to deliver the alternative fuel to the fuel-choice enabling 
        vehicles.
            ``(2) Temporary exemption from requirements.--
                    ``(A) Application.--A manufacturer may request an 
                exemption from the requirement described in paragraph 
                (1) by submitting an application to the Secretary, at 
                such time, in such manner, and containing such 
                information as the Secretary may require by regulation. 
                Each such application shall specify the models, lines, 
                and types of automobiles affected.
                    ``(B) Evaluation.--After evaluating an application 
                received from a manufacturer, the Secretary may at any 
                time, under such terms and conditions, and to such 
                extent as the Secretary considers appropriate, 
                temporarily exempt, or renew the exemption of, a light-
                duty automobile from the requirement described in 
                paragraph (1) if the Secretary determines that 
                unavoidable events not under the control of the 
                manufacturer prevent the manufacturer of such 
                automobile from meeting its required production volume 
                of fuel choice-enabling automobiles, including--
                            ``(i) a disruption in the supply of any 
                        component required for compliance with the 
                        regulations;
                            ``(ii) a disruption in the use and 
                        installation by the manufacturer of such 
                        component; or
                            ``(iii) application to plug-in electric 
                        drive vehicles causing such vehicles to fail to 
                        meet State air quality requirements.
                    ``(C) Consolidation.--The Secretary may consolidate 
                applications received from multiple manufacturers under 
                subparagraph (A) if they are of a similar nature.
                    ``(D) Conditions.--Any exemption granted under 
                subparagraph (B) shall be conditioned upon the 
                manufacturer's commitment to recall the exempted 
                automobiles for installation of the omitted components 
                within a reasonable time proposed by the manufacturer 
                and approved by the Secretary after such components 
                become available in sufficient quantities to satisfy 
                both anticipated production and recall volume 
                requirements.
                    ``(E) Notice.--The Secretary shall publish in the 
                Federal Register--
                            ``(i) notice of each application received 
                        from a manufacturer;
                            ``(ii) notice of each decision to grant or 
                        deny a temporary exemption; and
                            ``(iii) the reasons for granting or denying 
                        such exemptions.''.
    (2) The table of contents in chapter 329 of such title is amended 
adding at the end the following:

``32920. Open fuel standard for transportation.''.

SEC. 128. DIESEL EMISSIONS REDUCTION.

    Subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 
16131 et seq.) is amended--
            (1) in the matter preceding clause (i) in section 
        791(3)(B), by inserting ``in any State'' after ``nonprofit 
        organization or institution'';
            (2) in section 791(9), by striking ``The term `State' 
        includes the District of Columbia.'' and inserting ``The term 
        `State' includes the District of Columbia, American Samoa, 
        Guam, the Commonwealth of the Northern Mariana Islands, Puerto 
        Rico, and the Virgin Islands.'';
            (3) in section 793(c)--
                    (A) in paragraph (2)(A), by striking ``51 States'' 
                and inserting ``56 States'';
                    (B) in paragraph (2)(A), by striking ``1.96 
                percent'' and inserting ``1.785 percent'';
                    (C) in paragraph (2)(B), by striking ``51 States'' 
                and inserting ``56 States''; and
                    (D) in paragraph (2)(B), by amending clause (ii) to 
                read as follows:
                            ``(ii) the amount of funds remaining after 
                        each State described in paragraph (1) receives 
                        the 1.785-percent allocation under this 
                        paragraph.''; and
            (4) in section 797, by striking ``2011'' and inserting 
        ``2016''.

SEC. 129. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL 
              PIPELINES.

    (a) Definitions.--Section 1701 of the Energy Policy Act of 2005 (42 
U.S.C. 16511) is amended by adding at the end the following:
            ``(6) Renewable fuel.--The term `renewable fuel' has the 
        meaning given the term in section 211(o)(1) of the Clean Air 
        Act (42 U.S.C. 7545(o)(1)), except that the term shall include 
        all ethanol and biodiesel.
            ``(7) Renewable fuel pipeline.--The term `renewable fuel 
        pipeline' means a common carrier pipeline for transporting 
        renewable fuel.''.
    (b) Renewable Fuel Pipeline Eligibility.--Section 1703(b) the 
Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding at the 
end the following:
            ``(11) Renewable fuel pipelines.''.

SEC. 130. FLEET VEHICLES.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended as follows:
            (1) By adding the following new paragraph at the end of 
        subsection (a):
            ``(6) Repowered or converted alternative fueled vehicles.--
        As used in this paragraph, the term `repowered or converted 
        alternative fueled vehicle' includes light-, medium- or heavy-
        duty motor vehicles that have been modified with an EPA or CARB 
        compliant engine or vehicle or aftermarket system so that the 
        vehicle or engine is capable of operating on an alternative 
        fuel.''.
            (2) By adding the following new paragraph at the end of 
        subsection (b):
            ``(3) Repowered or converted vehicles. Not later than 
        January 1, 2010, the Secretary shall allocate credits to fleets 
        that repower or convert an existing vehicle so that it is 
        capable of operating on an alternative fuel. In the case of any 
        medium- or heavy-duty vehicle that is repowered or converted so 
        that it is capable of operating on an alternative fuel, the 
        Secretary shall allocate additional credits for such vehicles 
        if he determines that such vehicles displace more petroleum 
        than light duty alternative fueled vehicles. Such rules shall 
        also include a requirement that such vehicles remain in the 
        fleet for a period of no less than 2 years in order to continue 
        to qualify for credit. The Secretary also shall extend the 
        flexibility afforded in this paragraph to Federal fleets 
        subject to the purchase provisions contained in section 303 of 
        this Act.''.

SEC. 130A. REPORT ON NATURAL GAS VEHICLE EMISSIONS REDUCTIONS.

    Within 360 days after the date of enactment of this Act, the 
Administrator, in consultation with the Secretaries of Energy and 
Transportation, and the Administrator of the General Services 
Administration, and after an examination of available scientific 
studies or analysis, shall submit to the Congress a report on--
            (1) the contribution that light and heavy duty natural gas 
        vehicles, by category and State, have made during the last 
        decade to the reduction of greenhouse gases and criteria 
        pollutants under the Clean Air Act, and the reduced consumption 
        of petroleum-based fuels;
            (2) the contribution that light and heavy duty natural gas 
        vehicles are expected to make from 2010 to 2020 in reducing 
        greenhouse gas and criteria pollutants under the Clean Air Act 
        based, among other things, on additional Federal incentives for 
        the manufacture and deployment of natural gas vehicles provided 
        in this Act, and other Federal legislation; and
            (3) additional Federal measures, including legislation, 
        that could, if implemented, maximize the potential for natural 
        gas used in both stationary and mobile sources to contribute to 
        the reduction of greenhouse gases and criteria pollutants under 
        the Clean Air Act.

     Subtitle D--State Energy and Environment Development Accounts

SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.

    (a) Definitions.--In this section:
            (1) SEED account.--The term ``SEED Account'' means a State 
        Energy and Environment Development Account established pursuant 
        to this section.
            (2) State energy office.--The term ``State Energy Office'' 
        means a State entity eligible for grants under part D of title 
        III of the Energy Policy and Conservation Act (42 U.S.C. 6321 
        et seq.).
    (b) Establishment of Program.--The Administrator shall establish a 
program under which a State, through its State Energy Office or other 
State agency designated by the State, may operate a State Energy and 
Environment Development Account.
    (c) Purpose.--The purpose of each SEED Account is to serve as a 
common State-level repository for managing and accounting for emission 
allowances provided to States designated for renewable energy and 
energy efficiency purposes.
    (d) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall promulgate regulations to carry 
out this section, including regulations--
            (1) to ensure that each State operates its SEED Account and 
        any subaccounts thereof efficiently and in accordance with this 
        Act and applicable State and Federal laws;
            (2) to prevent waste, fraud, and abuse;
            (3) to indicate the emission allowances that may be 
        deposited in a State's SEED Account pending distribution or 
        use;
            (4) to indicate the programs and objectives authorized by 
        Federal law for which emission allowances in a SEED Account may 
        be distributed or used;
            (5) to identify the forms of financial assistance and 
        incentives that States may provide through distribution or use 
        of SEED Accounts; and
            (6) to prescribe the form and content of reports that the 
        States are required to submit under this section on the use of 
        SEED Accounts.
    (e) Operation.--
            (1) Deposits.--
                    (A) In general.--In the allowance tracking system 
                established pursuant to section 724(d) of the Clean Air 
                Act, the Administrator shall establish a SEED Account 
                for each State and place in it the allowances allocated 
                pursuant to section 782(g) of the Clean Air Act to be 
                distributed to States pursuant to sections 132 and 201 
                of this Act.
                    (B) Financial account.--A State may create a 
                financial account associated with its SEED Account to 
                deposit, retain, and manage any proceeds of any sale of 
                any allowance provided pursuant to this Act pending 
                expenditure or disbursement of those proceeds for 
                purposes permitted under this section. The funds in 
                such an account shall not be commingled with other 
                funds not derived from the sale of allowances provided 
                to the State; however, loans made by the State from 
                such funds pursuant to paragraph (2)(C)(i) may be 
                repaid into such a financial account, including any 
                interest charged.
            (2) Withdrawals.--
                    (A) In general.--All allowances distributed 
                pursuant to sections 132 and 201, including the 
                proceeds of any sale of such allowances, shall support 
                renewable energy and energy efficiency programs 
                authorized or approved by the Federal Government.
                    (B) Dedicated allowances.--Allowances distributed 
                pursuant to sections 132 and 201 that are required by 
                law to be used for specific purposes for a specified 
                period shall be used according to those requirements 
                during that period.
                    (C) Undedicated allowances.--To the extent that 
                allowances distributed pursuant to sections 132 and 201 
                are not required by law to be used for specific 
                purposes for a specified period as described in 
                subparagraph (B), such allowances or the proceeds of 
                their sale may be used for any of the following 
                purposes:
                            (i) Loans.--Loans of allowances, or the 
                        proceeds from the sale of allowances, may be 
                        provided, interest on commercial loans may be 
                        subsidized at an interest rate as low as zero, 
                        and other credit support may be provided to 
                        support programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                            (ii) Grants.--Grants of allowances or the 
                        proceeds of their sale may be provided to 
                        support programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                            (iii) Other forms of support.--Allowances 
                        or the proceeds of the sale of allowances may 
                        be provided for other forms of support for 
                        programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                            (iv) Administrative costs.--Except to the 
                        extent provided in Federal law authorizing or 
                        allocating allowances deposited in a SEED 
                        Account, not more than 5 percent of the 
                        allowance value in a SEED Account in any year 
                        may be used to cover administrative expenses of 
                        the SEED Account.
                    (D) Subaccounts.--A State may request that the 
                Administrator establish accounts for local governments 
                that request such subaccounts to hold allowances 
                distributed to local governments for renewable energy 
                or energy efficiency programs authorized or approved by 
                the Federal Government.
                    (E) Intended use plans.--
                            (i) In general.--After providing for public 
                        review and comment, each State administering a 
                        SEED Account shall annually prepare a plan that 
                        identifies the intended uses of the allowances 
                        or proceeds from the sale of allowances in its 
                        SEED Account.
                            (ii) Contents.--An intended use plan shall 
                        include--
                                    (I) a list of the projects or 
                                programs for which withdrawals from the 
                                SEED Account are intended in the next 
                                fiscal year that begins after the date 
                                of the plan, including a description of 
                                each project;
                                    (II) the relationship of each of 
                                the projects or programs to an 
                                identified Federal purpose authorized 
                                by this Act, or any other Federal 
                                statute;
                                    (III) the expected terms of use of 
                                allowance value to provide assistance;
                                    (IV) the criteria and methods 
                                established for the distribution of 
                                allowances or allowance value;
                                    (V) a description of the equivalent 
                                financial value and status of the SEED 
                                Account; and
                                    (VI) a statement of the mid-term 
                                and long-term goals of the State for 
                                use of its SEED Account.
            (3) Accountability and transparency.--
                    (A) Controls and procedures.--Any State that has a 
                SEED Account shall establish fiscal controls and 
                recordkeeping and accounting procedures for the SEED 
                Account sufficient to ensure proper accounting during 
                appropriate accounting periods for distributions into 
                the SEED Account, transfers from the SEED Account, and 
                SEED Account balances, including any related financial 
                accounts. Such controls and procedures shall conform to 
                generally accepted government accounting principles. 
                Any State that has a SEED Account shall retain records 
                for a period of at least 5 years.
                    (B) Audits.--Any State that has a SEED Account 
                shall have an annual audit conducted of the SEED 
                Account by an independent public accountant in 
                accordance with generally accepted auditing standards, 
                and shall transmit the results of that audit to the 
                Administrator.
                    (C) State report.--Each State administering a SEED 
                Account shall make publicly available and submit to the 
                Administrator a report every 2 years on its activities 
                related to its SEED Account.
                    (D) Public information.--Any--
                            (i) controls and procedures established 
                        under subparagraph (A); and
                            (ii) information obtained through audits 
                        conducted under subparagraph (B), except to the 
                        extent that it would be protected from 
                        disclosure, if it were information held by the 
                        Federal Government, under section 552(b) of 
                        title 5, United States Code,
                shall be made publicly available.
                    (E) Other protections.--The Administrator shall 
                require such additional procedures and protections as 
                are necessary to ensure that any State that has a SEED 
                Account will operate the SEED Account in an accountable 
                and transparent manner.
    (f) Requirements for Eligibility.--A State's eligibility to receive 
allowances in its SEED Account shall depend on that State's compliance 
with the requirements of this Act (and the amendments made by this 
Act).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as may be necessary for 
SEED Account operations.

SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY EFFICIENCY 
              PROGRAMS.

    (a) Definitions.--For purposes of this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act 
        (as added by section 311 of this Act).
            (2) Cost-effective.--The term ``cost-effective'', with 
        respect to an energy efficiency program, means that the program 
        meets the Total Resource Cost Test, which requires that the net 
        present value of economic benefits over the life of the program 
        or measure, including avoided supply and delivery costs and 
        deferred or avoided investments, is greater than the net 
        present value of the economic costs over the life of the 
        program, including program costs and incremental costs borne by 
        the energy consumer.
            (3) Renewable energy resource.--The term ``renewable energy 
        resource'' shall have the meaning given that term in section 
        610 of the Public Utility Regulatory Policies Act of 1978 (as 
        added by section 101 of this Act).
            (4) Vintage year.--The term ``vintage year'' shall the 
        meaning given that term in section 700 of the Clean Air Act (as 
        added by section 311 of this Act).
    (b) Distribution Among States.--Not later than September 30 of each 
calendar year from 2011 through 2049, the Administrator shall, in 
accordance with this section, distribute allowances allocated pursuant 
to section 782(g)(1) of the Clean Air Act (as added by section 311 of 
this Act) for the following vintage year. The Administrator shall 
distribute 0.5 percent of such allowances pursuant to section 133 of 
this Act. The Administrator shall distribute the remaining allowances 
to States for renewable energy and energy efficiency programs to be 
deposited in and administered through the State Energy and Environment 
Development (SEED) Accounts established pursuant to section 131. The 
Administrator shall distribute allowances among the States under this 
section each year in accordance with the following formula:
            (1) One third of the allowances shall be divided equally 
        among the States.
            (2) One third of the allowances shall be distributed 
        ratably among the States based on the population of each State, 
        as contained in the most recent reliable census data available 
        from the Bureau of the Census, Department of Commerce, for all 
        States at the time the Administrator calculates the formula for 
        distribution.
            (3) One third of the allowances for shall be distributed 
        ratably among the States on the basis of the energy consumption 
        of each State as contained in the most recent State Energy Data 
        Report available from the Energy Information Administration (or 
        such alternative reliable source as the Administrator may 
        designate).
    (c) Uses.--The allowances distributed to each State pursuant to 
this section shall be used exclusively in accordance with the following 
requirements:
            (1) Not less than 12.5 percent shall be distributed by the 
        State to units of local government within such State to be used 
        exclusively to support the energy efficiency and renewable 
        energy purposes listed in paragraphs (2) and (3).
            (2) Not less than 20 percent shall be used exclusively for 
        the following energy efficiency purposes, provided that not 
        less than 1 percent shall be used for the purpose described in 
        subparagraph (D) and not less than 5.5 percent shall be used 
        for the purpose described in subparagraph (E):
                    (A) Implementation and enforcement of building 
                codes adopted in compliance with section 201.
                    (B) Implementation of the energy efficient 
                manufactured homes program established pursuant to 
                section 203.
                    (C) Implementation of the building energy 
                performance labeling program established pursuant to 
                section 204.
                    (D) Low-income community energy efficiency programs 
                that are consistent with the grant program established 
                under section 264 of this Act.
                    (E) Implementation of the Retrofit for Energy and 
                Environmental Performance (REEP) program established 
                pursuant to section 202.
            (3) Not less than 20 percent shall be used exclusively for 
        capital grants, tax credits, production incentives, loans, loan 
        guarantees, forgivable loans, direct provision of allowances, 
        and interest rate buy-downs for--
                    (A) re-equipping, expanding, or establishing a 
                manufacturing facility that receives certification from 
                the Secretary of Energy pursuant to section 1302 of the 
                American Recovery and Reinvestment Act of 2009 for the 
                production of--
                            (i) property designed to be used to produce 
                        energy from renewable energy sources; and
                            (ii) electricity storage systems;
                    (B) deployment of technologies to generate 
                electricity from renewable energy sources; and
                    (C) deployment of facilities or equipment, such as 
                solar panels, to generate electricity or thermal energy 
                from renewable energy resources in and on buildings in 
                an urban environment.
            (4) The remaining 47.5 percent shall be used exclusively 
        for any of the following purposes:
                    (A) Energy efficiency purposes described in 
                paragraph (2).
                    (B) Renewable energy purposes described in 
                paragraph (3)(B) and (C).
                    (C) Cost-effective energy efficiency programs for 
                end-use consumers of electricity, natural gas, home 
                heating oil, or propane, including, where appropriate, 
                programs or mechanisms administered by local 
                governments and entities other than the State.
                    (D) Enabling the development of a Smart Grid (as 
                described in section 1301 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17381)) for State, 
                local government, and other public buildings and 
                facilities, including integration of renewable energy 
                resources and distributed generation, demand response, 
                demand side management, and systems analysis.
                    (E) Providing the non-Federal share of support for 
                surface transportation capital projects under--
                            (i) sections 5307, 5308, 5309, 5310, 5311 
                        and 5319 of title 49, United States Code; and
                            (ii) sections 142, 146, and 149 of title 
                        23, United States Code,
                provided that not more than 10 percent of allowances 
                distributed to each State pursuant to this section 
                shall be used for such purpose.
            (5) For any allowances used for the purpose described in 
        paragraph (4)(C), the State shall--
                    (A) prioritize expansion of existing energy 
                efficiency programs approved and overseen by the State 
                or the appropriate State regulatory authority; and
                    (B) demonstrate that such allowances have been used 
                to supplement, and not to supplant, existing and 
                otherwise available State, local, and ratepayer funding 
                for such purpose.
    (d) Reporting.--Each State receiving allowances under this section 
shall include in its biennial reports required under section 131, in 
accordance with such requirements as the Administrator may prescribe--
            (1) a list of entities receiving allowances or allowance 
        value under this section, including entities receiving such 
        allowances or allowance value from units of local government 
        pursuant to subsection (c)(1);
            (2) the amount and nature of allowances or allowance value 
        received by each such recipient;
            (3) the specific purposes for which such allowances or 
        allowance value was conveyed to each such recipient;
            (4) documentation of the amount of energy savings, emission 
        reductions, renewable energy deployment, and new or retooled 
        manufacturing capacity resulting from the use of such 
        allowances or allowance value; and
            (5) for any energy efficiency program supported under 
        subsection (c)(4)(C)--
                    (A) an assessment demonstrating the cost-
                effectiveness of such program; and
                    (B) a demonstration that the requirements set forth 
                in subsection (c)(5) have been satisfied.
    (e) Enforcement.--If the Administrator determines that a State is 
not in compliance with this section, the Administrator may withhold up 
to twice the number of allowances that the State failed to use in 
accordance with the requirements of this section, that such State would 
otherwise be eligible to receive under this section in later years. 
Allowances withheld pursuant to this subsection shall be distributed 
among the remaining States in accordance with the requirements of 
subsection (b).

SEC. 133. SUPPORT OF INDIAN RENEWABLE ENERGY AND ENERGY EFFICIENCY 
              PROGRAMS.

    (a) Definitions.--For purposes of this section:
            (1) Allowance; cost-effective; renewable energy resource.--
        The terms ``allowance'', ``cost-effective'', and ``renewable 
        energy resource'' have the meaning given those terms in section 
        132 of this Act.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25. U.S.C. 450b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Establishment.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall, in consultation with the 
Administrator and the Secretary of the Interior, promulgate regulations 
establishing a program to distribute allowances to Indian tribes on a 
competitive basis for the following purposes:
            (1) Energy efficiency.--Cost-effective energy efficiency 
        programs for end-use consumers of electricity, natural gas, 
        home heating oil, or propane.
            (2) Renewable energy.--Deployment of technologies to 
        generate electricity from renewable energy resources.
    (c) Requirements.--The regulations promulgated pursuant to 
subsection (b) shall prescribe design elements and requirements of the 
program established under this section, including--
            (1) objective criteria for evaluating proposals submitted 
        by Indian tribes, and for selecting projects and programs to 
        receive support, under this section;
            (2) reporting requirements for Indian tribes that receive 
        allowances under this section; and
            (3) other appropriate elements and requirements.
    (d) Distribution.--The Administrator shall, at the direction of the 
Secretary, distribute to Indian tribes allowances that are set aside, 
pursuant to section 132, for use under this section.

                   Subtitle E--Smart Grid Advancement

SEC. 141. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``applicable baseline'' means the average of 
        the highest three annual peak demands a load-serving entity has 
        experienced during the 5 years immediately prior to the date of 
        enactment of this Act.
            (2) The term ``Commission'' means Federal Energy Regulatory 
        Commission.
            (3) The term ``load-serving entity'' means an entity that 
        provides electricity directly to retail consumers with the 
        responsibility to assure power quality and reliability, 
        including such entities that are investor-owned, publicly 
        owned, owned by rural electric cooperatives, or other entities.
            (4) The term ``peak demand'' means the highest point of 
        electricity demand, net of any distributed electricity 
        generation or storage from sources on the load-serving entity's 
        customers' premises, during any hour on the system of a load 
        serving entity during a calendar year, expressed in Megawatts 
        (MW), or more than one such high point as a function of 
        seasonal demand changes.
            (5) The term ``peak demand reduction'' means the reduction 
        in annual peak demand as compared to a previous baseline year 
        or period, expressed in Megawatts (MW), whether accomplished 
        by--
                    (A) diminishing the end-use requirements for 
                electricity;
                    (B) use of locally stored energy or generated 
                electricity to meet those requirements from distributed 
                resources on the load-serving entity's customers' 
                premises and without use of high-voltage transmission; 
                or
                    (C) energy savings from efficient operation of the 
                distribution grid resulting from the use of a Smart 
                Grid.
            (6) The term ``peak demand reduction plan'' means a plan 
        developed by or for a load-serving entity that it will 
        implement to meet its peak demand reduction goals.
            (7) The term ``peak period'' means the time period on the 
        system of a load-serving entity relative to peak demand that 
        may warrant special measures or electricity resources to 
        maintain system reliability while meeting peak demand.
            (8) The term ``Secretary'' means the Secretary of Energy.
            (9) The term ``Smart Grid'' has the meaning provided by 
        section 1301 of the Energy Independence and Security Act of 
        2007 (15 U.S.C. 17381).

SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.

    (a) Assessment.--Within 1 year after the date of enactment of this 
Act, the Secretary and the Administrator shall each assess the 
potential for cost-effective integration of Smart Grid technologies and 
capabilities in all products that are reviewed by the Department of 
Energy and the Environmental Protection Agency, respectively, for 
potential designation as Energy Star products.
    (b) Analysis.--(1) Within 2 years after the date of enactment of 
this Act, the Secretary and the Administrator shall each prepare an 
analysis of the potential energy savings, greenhouse gas emission 
reductions, and electricity cost savings that could accrue for each of 
the products identified by the assessment in subsection (a) in the 
following optimal circumstances:
            (A) The products possessed Smart Grid capability and 
        interoperability that is tested and proven reliable.
            (B) The products were utilized in an electricity utility 
        service area which had Smart Grid capability and offered 
        customers rate or program incentives to use the products.
            (C) The utility's rates reflected national average costs, 
        including average peak and valley seasonal and daily 
        electricity costs.
            (D) Consumers using such products took full advantage of 
        such capability.
            (E) The utility avoided incremental investments and rate 
        increases related to such savings.
    (2) The analysis under paragraph (1) shall be considered the ``best 
case'' Smart Grid analysis. On the basis of such an analysis for each 
product, the Secretary and the Administrator shall determine whether 
the installation of Smart Grid capability for such a product would be 
cost effective. For purposes of this paragraph, the term ``cost 
effective'' means that the cumulative savings from using the product 
under the best case Smart Grid circumstances for a period of one-half 
of the product's expected useful life will be greater than the 
incremental cost of the Smart Grid features included in the product.
    (3) To the extent that including Smart Grid capability in any 
products analyzed under paragraph (2) is found to be cost effective in 
the best case, the Secretary and the Administrator shall, not later 
than 3 years after the date of enactment of this Act take each of the 
following actions:
            (A) Inform the manufacturer of such product of such finding 
        of cost effectiveness.
            (B) Assess the potential contributions the development and 
        use of products with Smart Grid technologies bring to reducing 
        peak demand and promoting grid stability.
            (C) Assess the potential national energy savings and 
        electricity cost savings that could be realized if Smart Grid 
        potential were installed in the relevant products reviewed by 
        the Energy Star program.
            (D) Assess and identify options for providing consumers 
        information on products with Smart Grid capabilities, including 
        the necessary conditions for cost-effective savings.
            (E) Submit a report to Congress summarizing the results of 
        the assessment for each class of products, and presenting the 
        potential energy and greenhouse gas savings that could result 
        if Smart Grid capability were installed and utilized on such 
        products.

SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE 
              LABELS.

    Section 324(a)(2) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
                    ``(J)(i) Not later than 1 year after the date of 
                enactment of this subparagraph, the Federal Trade 
                Commission shall initiate a rulemaking to consider 
                making a special note in a prominent manner on any 
                ENERGY GUIDE label for any product actually including 
                Smart Grid capability that--
                            ``(I) Smart Grid capability is a feature of 
                        that product;
                            ``(II) the use and value of that feature 
                        depended on the Smart Grid capability of the 
                        utility system in which the product was 
                        installed and the active utilization of that 
                        feature by the customer; and
                            ``(III) on a utility system with Smart Grid 
                        capability, the use of the product's Smart Grid 
                        capability could reduce the customer's cost of 
                        the product's annual operation by an estimated 
                        dollar amount range representing the result of 
                        incremental energy and electricity cost savings 
                        that would result from the customer taking full 
                        advantage of such Smart Grid capability.
                    ``(ii) Not later than 3 years after the date of 
                enactment of this subparagraph, the Commission shall 
                complete the rulemaking initiated under clause (i).''.

SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.

    (a) Goals.--Not later than 1 year after the date of enactment of 
this section, each load-serving entity, or, at the option of the State, 
each State with respect to load-serving entities that the State 
regulates, shall determine and publish peak demand reduction goals for 
any load-serving entities that have an applicable baseline in excess of 
250 megawatts.
    (b) Baselines.--(1) The Commission, in consultation with the 
Secretary and the Administrator, shall develop and publish, after an 
opportunity for public comment, but not later than 180 days after 
enactment of this section, a methodology to provide for adjustments or 
normalization to a load-serving entity's applicable baseline over time 
to reflect changes in the number of customers served, weather 
conditions, general economic conditions, and any other appropriate 
factors external to peak demand management, as determined by the 
Commission.
    (2) The Commission shall support load-serving entities (including 
any load-serving entities with an applicable baseline of less than 250 
megawatts that volunteer to participate in achieving the purposes of 
this section) in determining their applicable baselines, and in 
developing their peak demand reduction goals.
    (3) The Secretary, in consultation with the Commission, the 
Administrator, and the North American Electric Reliability Corporation, 
shall develop a system and rules for measurement and verification of 
demand reductions.
    (c) Peak Demand Reduction Goals.--(1) Peak demand reduction goals 
may be established for an individual load-serving entity, or, at the 
determination of a State, tribal, or regional entity, by that State, 
tribal, or regional entity for a larger region that shares a common 
system peak demand and for which peak demand reduction measures would 
offer regional benefit.
    (2) A State or regional entity establishing peak demand reduction 
goals shall cooperate, as necessary and appropriate, with the 
Commission, the Secretary, State regulatory commissions, State energy 
offices, the North American Electric Reliability Corporation, and other 
relevant authorities.
    (3) In determining the applicable peak demand reduction goals--
            (A) States and other jurisdictional entities may utilize 
        the results of the 2009 National Demand Response Potential 
        Assessment, as authorized by section 571 of the National Energy 
        Conservation Policy Act (42 U.S.C. 8279); and
            (B) the relative economics of peak demand reduction and 
        generation required to meet peak demand shall be evaluated in a 
        neutral and objective manner.
    (4) The applicable peak demand reduction goals shall provide that--
            (A) load-serving entities will reduce or mitigate peak 
        demand by a minimum percentage amount from the applicable 
        baseline to a lower peak demand during calendar year 2012;
            (B) load-serving entities will reduce or mitigate peak 
        demand by a minimum percentage greater amount from the 
        applicable baseline to a lower peak demand during calendar year 
        2015; and
            (C) the minimum percentage reductions established as peak 
        demand reduction goals shall be the maximum reductions that are 
        realistically achievable with an aggressive effort to deploy 
        Smart Grid and peak demand reduction technologies and methods, 
        including but not limited to those listed in subsection (d).
    (d) Plan.--Each load-serving entity shall prepare a peak demand 
reduction plan that demonstrates its ability to meet each applicable 
goal by any or a combination of the following options:
            (1) Direct reduction in megawatts of peak demand through--
                    (A) energy efficiency measures (including efficient 
                transmission wire technologies which significantly 
                reduce line loss compared to traditional wire 
                technology) with reliable and continued application 
                during peak demand periods; or
                    (B) use of a Smart Grid.
            (2) Demonstration that an amount of megawatts equal to a 
        stated portion of the applicable goal is contractually 
        committed to be available for peak reduction through one or 
        more of the following:
                    (A) Megawatts enrolled in demand response programs.
                    (B) Megawatts subject to the ability of a load-
                serving entity to call on demand response programs, 
                smart appliances, smart electricity or energy storage 
                devices, distributed generation resources on the 
                entity's customers' premises, or other measures 
                directly capable of actively, controllably, reliably, 
                and dynamically reducing peak demand (``dynamic peak 
                management control'').
                    (C) Megawatts available from distributed dynamic 
                electricity or energy storage under agreement with the 
                owner of that storage.
                    (D) Megawatts committed from dispatchable 
                distributed generation demonstrated to be reliable 
                under peak period conditions and in compliance with air 
                quality regulations.
                    (E) Megawatts available from smart appliances and 
                equipment with Smart Grid capability available for 
                direct control by the utility through agreement with 
                the customer owning the appliances or equipment or with 
                a third party pursuant to such agreements.
                    (F) Megawatts from a demonstrated and assured 
                minimum of distributed solar electric generation 
                capacity in instances where peak period and peak demand 
                conditions are directly related to solar radiation and 
                accompanying heat.
            (3) If any of the methods listed in subparagraph (C), (D), 
        or (E) of paragraph (2) are relied upon to meet its peak demand 
        reduction goals, the load-serving entity must demonstrate this 
        capability by operating a test during the applicable calendar 
        year.
            (4) Nothing in this section shall require the publication 
        in peak demand reduction goals or in any peak demand reduction 
        plan of any information that is confidential for competitive or 
        other reasons or that identifies individual customers.
    (e) Existing Authority and Requirements.--Nothing in this section 
diminishes or supersedes any authority of a State or political 
subdivision of a State to adopt or enforce any law or regulation 
respecting peak demand management, demand response, distributed energy 
storage, use of distributed generation, or the regulation of load-
serving entities. The Commission, in consultation with States and 
Indian tribes having such peak management, demand response and 
distributed energy storage programs, shall to the maximum extent 
practicable, facilitate coordination between the Federal program and 
such State and tribal programs.
    (f) Relief.--The Commission may, for good cause, grant relief to 
load-serving entities from the requirements of this section.
    (g) Other Laws.--Except as provided in subsections (e) and (f), no 
law or regulation shall relieve any person of any requirement otherwise 
applicable under this section.
    (h) Compliance.--(1) The Commission shall within 1 year after the 
date of enactment of this Act establish a public website where the 
Commission will provide information and data demonstrating compliance 
by States, Indian tribes regional entities, and load-serving entities 
with this section, including the success of load-serving entities in 
meeting applicable peak demand reduction goals.
    (2) The Commission shall, by April 1 of each year beginning in 
2012, provide a report to Congress on compliance with this section and 
success in meeting applicable peak demand reduction goals and, as 
appropriate, shall make recommendations as to how to increase peak 
demand reduction efforts.
    (3) The Commission shall note in each such report any State, 
political subdivision of a State, or load-serving entity that has 
failed to comply with this section, or is not a part of any region or 
group of load-serving entities serving a region that has complied with 
this section.
    (4) The Commission shall have and exercise the authority to take 
reasonable steps to modify the process of establishing peak demand 
reduction goals and to accept adjustments to them as appropriate when 
sought by load-serving entities.
    (i) Assistance and Funding.--
            (1) Assistance to states and tribes.--Any costs incurred by 
        States for activities undertaken pursuant to this section shall 
        be supported by the use of emission allowances allocated to the 
        States' SEED Accounts or to the tribes pursuant to section 132 
        of this Act. To the extent that a State provides allowances to 
        local governments within the State to implement this program, 
        that shall be deemed a distribution of such allowances to units 
        of local government pursuant to subsection (c)(1) of that 
        section.
            (2) Funding.--There are authorized to be appropriated such 
        sums as may be necessary to the Commission, the Secretary, and 
        the Administrator to carry out the provisions of this section.

SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION 
              PROGRAM TO INCLUDE SMART GRID INFORMATION.

    (a) In General.--Section 134 of the Energy Policy Act of 2005 (42 
U.S.C. 15832) is amended as follows:
            (1) By amending the section heading to read as follows: 
        ``energy efficiency and smart grid public information 
        initiative''.
            (2) In paragraph (1) of subsection (a) by striking ``reduce 
        energy consumption during the 4-year period beginning on the 
        date of enactment of this Act'' and inserting ``increase energy 
        efficiency and to adopt Smart Grid technology and practices''.
            (3) In paragraph (2) of subsection (a) by striking 
        ``benefits to consumers of reducing'' and inserting ``economic 
        and environmental benefits to consumers and the United States 
        of optimizing''.
            (4) In subsection (a) by inserting at the beginning of 
        paragraph (3) ``the effect of energy efficiency and Smart Grid 
        capability in reducing energy and electricity prices throughout 
        the economy, together with''.
            (5) In subsection (a)(4) by redesignating subparagraph (D) 
        as (E), by striking ``and'' at the end of subparagraph (C), and 
        by inserting after subparagraph (C) the following:
                    ``(D) purchasing and utilizing equipment that 
                includes Smart Grid features and capability; and''.
            (6) In subsection (c), by striking ``Not later than July 1, 
        2009,'' and inserting, ``For each year when appropriations 
        pursuant to the authorization in this section exceed 
        $10,000,000,''.
            (7) In subsection (d) by striking ``2010'' and inserting 
        ``2020''.
            (8) In subsection (e) by striking ``2010'' and inserting 
        ``2020''.
    (b) Table of Contents.--The item relating to section 134 in the 
table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 
and following) is amended to read as follows:

``Sec. 134. Energy efficiency and Smart Grid public information 
                            initiative.''.

SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.

    (a) Amendments.--Section 124 of the Energy Policy Act of 2005 (42 
U.S.C. 15821) is amended as follows:
            (1) By amending the section heading to read as follows: 
        ``energy efficient and smart appliance rebate program.''.
            (2) By redesignating paragraphs (4) and (5) of subsection 
        (a) as paragraphs (5) and (6), respectively, and inserting 
        after paragraph (3) the following:
            ``(4) Smart appliance.--The term `smart appliance' means a 
        product that the Administrator of the Environmental Protection 
        Agency or the Secretary of Energy has determined qualifies for 
        such a designation in the Energy Star program pursuant to 
        section 142 of the American Clean Energy and Security Act of 
        2009, or that the Secretary or the Administrator has separately 
        determined includes the relevant Smart Grid capabilities listed 
        in section 1301 of the Energy Independence and Security Act of 
        2007 (15 U.S.C. 17381).''.
            (3) In subsection (b)(1) by inserting ``and smart'' after 
        ``efficient'' and by inserting after ``products'' the first 
        place it appears ``, including products designated as being 
        smart appliances''.
            (4) In subsection (b)(3), by inserting ``the administration 
        of'' after ``carry out''.
            (5) In subsection (d), by inserting ``the administration 
        of'' after ``carrying out'' and by inserting ``, and up to 100 
        percent of the value of the rebates provided pursuant to this 
        section'' before the period at the end.
            (6) In subsection (e)(3), by inserting ``, with separate 
        consideration as applicable if the product is also a smart 
        appliance,'' after ``Energy Star product'' the first place it 
        appears and by inserting ``or smart appliance'' before the 
        period at the end.
            (7) In subsection (f), by striking ``$50,000,000'' through 
        the period at the end and inserting ``$100,000,000 for each 
        fiscal year from 2010 through 2015.''.
    (b) Table of Contents.--The item relating to section 124 in the 
table of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 
and following) is amended to read as follows:

``Sec. 124. Energy efficient and smart appliance rebate program.''.

                   Subtitle F--Transmission Planning

SEC. 151. TRANSMISSION PLANNING AND SITING.

    (a) In General.--Section 216 of the Federal Power Act (16 U.S.C. 
824p) is amended as follows:
            (1) In subsection (b), in paragraph (5), by striking ``; 
        and'' and inserting a semicolon, in paragraph (6) by striking 
        the period and inserting ``; and'' and by adding the following 
        at the end thereof:
            ``(7) the facility is interstate in nature or is an 
        intrastate segment integral to a proposed interstate 
        facility;''.
            (2) In subsection (k), by inserting at the end the 
        following: ``Subsections (a), (b), (c), and (h) of this section 
        shall not apply in the Western interconnection.''.
            (3) In subsections (d) and (e), by striking ``subsection 
        (b)'' in each place and inserting ``subsection (b) or section 
        216B'', and by striking ``permit'' and inserting ``permit or 
        certificate'' in each place it appears.
    (b) New Sections.--The Federal Power Act (16 U.S.C. 824p) is 
amended by inserting the following new sections after section 216:

``SEC. 216A. TRANSMISSION PLANNING.

    ``(a) Federal Policy for Transmission Planning.--
            ``(1) Objectives.--It is the policy of the United States 
        that regional electric grid planning should facilitate the 
        deployment of renewable and other zero-carbon and low-carbon 
        energy sources for generating electricity to reduce greenhouse 
        gas emissions while ensuring reliability, reducing congestion, 
        ensuring cyber-security, minimizing environmental harm, and 
        providing for cost-effective electricity services throughout 
        the United States, in addition to serving the objectives stated 
        in section 217(b)(4).
            ``(2) Options.--In addition to the policy under paragraph 
        (1), it is the policy of the United States that regional 
        electric grid planning to meet these objectives should result 
        from an open, inclusive and transparent process, taking into 
        account all significant demand-side and supply-side options, 
        including energy efficiency, distributed generation, renewable 
        energy and zero-carbon electricity generation technologies, 
        smart-grid technologies and practices, demand response, 
        electricity storage, voltage regulation technologies, high 
        capacity conductors with at least 25 percent greater efficiency 
        than traditional ACSR (aluminum stranded conductors steel 
        reinforced) conductors, superconductor technologies, 
        underground transmission technologies, and new conventional 
        electric transmission capacity and corridors.
    ``(b) Planning.--
            ``(1) Planning principles.--Not later than 1 year after the 
        date of enactment of this section, the Commission shall adopt, 
        after notice and opportunity for comment, national electricity 
        grid planning principles derived from the Federal policy 
        established under subsection (a) to be applied in ongoing and 
        future transmission planning that may implicate interstate 
        transmission of electricity.
            ``(2) Regional planning entities.--Not later than 3 months 
        after the date of adoption by the Commission of national 
        electricity grid planning principles pursuant to paragraph (1), 
        entities that conduct or may conduct transmission planning 
        pursuant to State, tribal, or Federal law or regulation, 
        including States, Indian tribes, entities designated by States 
        and Indian tribes, Federal Power Marketing Administrations, 
        transmission providers, operators and owners, regional 
        organizations, and electric utilities, and that are willing to 
        incorporate the national electricity grid planning principles 
        adopted by the Commission in their electric grid planning, 
        shall identify themselves and the regions for which they 
        propose to develop plans to the Commission.
            ``(3) Coordination of regional planning entities.--The 
        Commission shall encourage regional planning entities described 
        under paragraph (2) to cooperate and coordinate across regions 
        and to harmonize regional electric grid planning with planning 
        in adjacent or overlapping jurisdictions to the maximum extent 
        feasible. The Commission shall work with States, Indian tribes, 
        Federal land management agencies, State energy, environment, 
        natural resources, and land management agencies and 
        commissions, Federal power marketing administrations, electric 
        utilities, transmission providers, load-serving entities, 
        transmission operators, regional transmission organizations, 
        independent system operators, and other organizations to 
        resolve any conflict or competition among proposed planning 
        entities in order to build consensus and promote the Federal 
        policy established under subsection (a). The Commission shall 
        seek to ensure that planning that is consistent with the 
        national electricity grid planning principles adopted pursuant 
        to paragraph (1) is conducted in all regions of the United 
        States and the territories, but in a manner that, to the extent 
        feasible, avoids uncoordinated planning by more than one 
        planning entity for the same area.
            ``(4) Relation to existing planning policy.--In 
        implementing the Federal policy established under subsection 
        (a), the Commission shall--
                    ``(A) incorporate and coordinate with any ongoing 
                planning efforts undertaken pursuant to section 217 and 
                Commission Order No. 890;
                    ``(B) coordinate with the Secretary of Energy in 
                providing to the regional planning entities an annual 
                summary of national energy policy priorities and goals;
                    ``(C) coordinate with corridor designation and 
                planning functions carried out pursuant to section 216 
                by the Secretary of Energy, who shall provide financial 
                support from available funds to support the purposes of 
                this section; and
                    ``(D) coordinate with the Secretaries of the 
                Interior and Agriculture and Indian tribes in carrying 
                out the Secretaries' or tribal governments' existing 
                responsibilities for the planning or siting of 
                transmission facilities on Federal or tribal lands, 
                consistent with law, policy, and regulations relating 
                to the management of federal public lands.
            ``(5) Assistance.--
                    ``(A) In general.--The Commission shall provide 
                support to and may participate if invited to do so in 
                the regional grid planning processes conducted by 
                regional planning entities. The Secretary of Energy and 
                the Commission may provide planning resources and 
                assistance as required or as requested by regional 
                planning entities, including system data, cost 
                information, system analysis, technical expertise, 
                modeling support, dispute resolution services, and 
                other assistance to regional planning entities, as 
                appropriate.
                    ``(B) Authorization.--There are authorized to be 
                appropriated such sums as may be necessary to carry out 
                this paragraph.
            ``(6) Conflict resolution.--In the event that regional grid 
        plans conflict, the Commission shall assist the regional 
        planning entities in resolving such conflicts in order to 
        achieve the objectives of the Federal policy established under 
        subsection (a).
            ``(7) Submission of plans.--The Commission shall require 
        regional planning entities to submit initial regional electric 
        grid plans to the Commission not later than 18 months after the 
        date the Commission promulgates national electricity grid 
        planning principles pursuant to paragraph (1), with updates to 
        such plans not less than every 3 years thereafter. The 
        Commission shall review such plans for consistency with the 
        national grid planning principles and may return a plan to one 
        or more planning entities for further consideration, along with 
        the Commission's own recommendations for resolution of any 
        conflict or for improvement.
            ``(8) Integration of plans.--Regional electric grid plans 
        should, in general, be developed from sub-regional requirements 
        and plans, including planning input reflecting individual 
        utility service areas. Regional plans may then in turn be 
        combined into larger regional plans, up to interconnection-wide 
        and national plans, as appropriate and necessary as determined 
        by the Commission. In no case shall a multi-regional plan 
        impose inclusion of a facility on a region that has submitted a 
        valid plan that, after efforts to resolve the conflict, does 
        not include such facility. To the extent practicable, all plans 
        submitted to the Commission shall be public documents and 
        available on the Commission's Web site.
            ``(9) Multi-regional meetings.--As regional grid plans are 
        submitted to the Commission, the Commission may convene multi-
        regional meetings to discuss regional grid plan consistency and 
        integration, including requirements for multi-regional 
        projects, and to resolve any conflicts that emerge from such 
        multi-regional projects. The Commission shall provide its 
        recommendations for eliminating any inter-regional conflicts.
            ``(10) Report to congress.--Not later than 3 years after 
        the date of enactment of this section and each 3 years 
        thereafter, the Commission shall provide a report to Congress 
        containing the results of the regional grid planning process, 
        including summaries of the adopted regional plans and the 
        extent to which the Federal policy objectives in subsection (a) 
        have been successfully achieved. The Commission shall provide 
        an electronic version of its report on its website with links 
        to all regional and sub-regional plans taken into account. The 
        Commission shall note and provide its recommended resolution 
        for any conflicts not resolved during the planning process. The 
        Commission shall make any recommendations to Congress on the 
        appropriate Federal role or support required to address the 
        needs of the electric grid, including recommendations for 
        addressing any needs that are beyond the reach of existing 
        State, tribal, and Federal authority.

``SEC. 216B. SITING AND CONSTRUCTION IN THE WESTERN INTERCONNECTION.

    ``(a) Applicability.--This section applies only to States located 
in the Western Interconnection and does not apply to States located in 
the Eastern Interconnection, to the States of Alaska or Hawaii, or to 
ERCOT.
    ``(b) Certificate of Public Convenience and Necessity.--The 
Commission may, after notice and opportunity for hearing, issue a 
certificate of public convenience and necessity for the construction or 
modification of a transmission facility if the Commission finds that--
            ``(1) the facility was identified and included in one or 
        more relevant and final regional or interconnection-wide 
        electric grid plans submitted to the Commission pursuant to 
        subsection (b) of 216A;
            ``(2) any conflict among regional electric grid plans 
        concerning the need for the facility was resolved;
            ``(3) such relevant regional electric grid plans are 
        consistent with the national grid planning principles adopted 
        by the Commission pursuant to subsection (b);
            ``(4) the facility was identified as needed in significant 
        measure to meet demand for renewable energy in such plans;
            ``(5) the facility is a multistate facility;
            ``(6) the developer of such facility filed a complete 
        application seeking approval for the siting of the facility 
        with a state commission or other entity that has authority to 
        approve the siting of the facility;
            ``(7) a State commission or other entity that has authority 
        to approve the siting of the facility--
                    ``(A) did not issue a decision on an application 
                seeking approval for the siting of the facility within 
                1 year after the date the applicant submitted a 
                completed application to the State;
                    ``(B) denied a complete application seeking 
                approval for the siting of the facility; or
                    ``(C) authorized the siting of the facility subject 
                to conditions that unreasonably interfere with the 
                development of the facility; and
            ``(8) the siting of the facility can be accomplished in a 
        manner consistent with the Federal policy established in 
        subsection (a) of section 216A and the national grid planning 
        principles adopted by the Commission pursuant to subsection (b) 
        of section 216A.
    ``(c) State Recommendations on Resource Protection.--In issuing a 
final certificate of public convenience and necessity pursuant to 
subsection (b), the Commission shall--
            ``(1) consider any siting constraints and mitigation 
        measures based on habitat protection, health and safety 
        considerations, environmental considerations, or cultural site 
        protection identified by relevant State or local authorities; 
        and
            ``(2) incorporate those identified siting constraints or 
        mitigation measures, including recommendations related to 
        project routing, as conditions in the final certificate of 
        public convenience and necessity, or if the Commission 
        determines that a recommended siting constraint or mitigation 
        measure is infeasible, excessively costly, or inconsistent with 
        the Federal policy established in subsection (a) of section 
        216A or the national grid planning principles adopted by the 
        Commission pursuant to subsection (b) of section 216A--
                    ``(A) consult with State regulatory agencies to 
                seek to resolve the issue;
                    ``(B) incorporate as conditions on the certificate 
                such recommended siting constraints or mitigation 
                measures as are determined to be appropriate by the 
                Commission, based on consultation by the Commission 
                with State regulatory agencies, the Federal policy 
                established in subsection (a) of section 216A and the 
                national grid planning principles adopted by the 
                Commission pursuant to subsection (b)of section 216A, 
                and the record before the Commission; and
                    ``(C) if, after consultation, the Commission does 
                not adopt in whole or in part a recommendation of an 
                agency, publish a finding that the adoption of the 
                recommendation is infeasible, not cost effective, or 
                inconsistent with this section or other applicable 
                provisions of law.
    ``(d) Certificate Applications.--(1) An application for a 
preliminary or final certificate of public convenience and necessity 
under this subsection shall be made in writing to the Commission.
    ``(2) The Commission shall issue rules specifying--
            ``(A) the form of the application;
            ``(B) the information to be contained in the application; 
        and
            ``(C) the manner of service of notice of the application on 
        interested persons.
    ``(e) Coordination of Federal Authorizations for Transmission 
Facilities.--
            ``(1) In this subsection, the term `Federal authorization' 
        shall have the same meaning and include the same actions as in 
        section 216(h).
            ``(2) The Federal Energy Regulatory Commission shall act as 
        the lead agency for purposes of coordinating all applicable 
        Federal authorizations and related environmental reviews of the 
        facility, provided, however, that to the extent the facility is 
        proposed to be sited on Federal lands, the Department of the 
        Interior will assume such lead-agency duties as agreed between 
        the Commission and the Department of Interior.
            ``(3) To the maximum extent practicable under applicable 
        Federal law, the Commission, and to the extent agreed, the 
        Secretary of Interior, shall coordinate the Federal 
        authorization and review process under this subsection with any 
        Indian tribes, multistate entities, and State agencies that are 
        responsible for conducting any separate permitting and 
        environmental reviews of the facility, to ensure timely and 
        efficient review and permit decisions.
            ``(4)(A) As head of the lead agency, the Chairman of the 
        Commission, in consultation with the Secretary of Interior and 
        with those entities referred to in paragraph (3) that are 
        willing to coordinate their own separate permitting and 
        environmental reviews with the Federal authorization and 
        environmental reviews, shall establish prompt and binding 
        intermediate milestones and ultimate deadlines for the review 
        of, and Federal authorization decisions relating to, the 
        proposed facility.
            ``(B) The Chairman of the Commission, or the Secretary of 
        Interior, as agreed under paragraph (2), shall ensure that, 
        once an application has been submitted with such data as the 
        lead agency considers necessary, all permit decisions and 
        related environmental reviews under all applicable Federal laws 
        shall be completed--
                    ``(i) within 1 year; or
                    ``(ii) if a requirement of another provision of 
                Federal law does not permit compliance with clause (i), 
                as soon thereafter as is practicable.
            ``(C) The Commission shall provide an expeditious pre-
        application mechanism for prospective applicants to confer with 
        the agencies involved to have each such agency determine and 
        communicate to the prospective applicant not later than 60 days 
        after the prospective applicant submits a request for such 
        information concerning--
                    ``(i) the likelihood of approval for a potential 
                facility; and
                    ``(ii) key issues of concern to the agencies and 
                public.
            ``(5)(A) As lead agency head, the Chairman of the 
        Commission, in consultation with the affected agencies, shall 
        prepare a single environmental review document, which shall be 
        used as the basis for all decisions on the proposed project 
        under Federal law.
            ``(B) The Chairman of the Commission and the heads of other 
        agencies shall streamline the review and permitting of 
        transmission within corridors designated under section 503 of 
        the Federal Land Policy and Management Act (43 U.S.C. 1763) by 
        fully taking into account prior analyses and decisions relating 
        to the corridors.
            ``(C) The document shall include consideration by the 
        relevant agencies of any applicable criteria or other matters 
        as required under applicable law.
            ``(6)(A) If any agency has denied a Federal authorization 
        required for a transmission facility, or has failed to act by 
        the deadline established by the Commission pursuant to this 
        section for deciding whether to issue the authorization, the 
        applicant or any State in which the facility would be located 
        may file an appeal with the President, who shall, in 
        consultation with the affected agency, review the denial or 
        failure to take action on the pending application.
            ``(B) Based on the overall record and in consultation with 
        the affected agency, the President may--
                    ``(i) issue the necessary authorization with any 
                appropriate conditions; or
                    ``(ii) deny the application.
            ``(C) The President shall issue a decision not later than 
        90 days after the date of the filing of the appeal.
            ``(D) In making a decision under this paragraph, the 
        President shall comply with applicable requirements of Federal 
        law, including any requirements of--
                    ``(i) the National Forest Management Act of 1976 
                (16 U.S.C. 472a et seq.);
                    ``(ii) the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.);
                    ``(iii) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    ``(iv) the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.); and
                    ``(v) the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1701 et seq.).
            ``(7)(A) Not later than 18 months after August 8, 2005, the 
        Commission or, as requested, the Secretary or Interior, shall 
        issue any regulations necessary to implement this subsection.
            ``(B)(i) Not later than 1 year after August 8, 2005, the 
        Commission, the Secretary of Interior, and the heads of all 
        Federal agencies with authority to issue Federal authorizations 
        shall enter into a memorandum of understanding to ensure the 
        timely and coordinated review and permitting of electricity 
        transmission facilities.
            ``(ii) Interested Indian tribes, multistate entities, and 
        State agencies may enter the memorandum of understanding.
            ``(C) The head of each Federal agency with authority to 
        issue a Federal authorization shall designate a senior official 
        responsible for, and dedicate sufficient other staff and 
        resources to ensure, full implementation of the regulations and 
        memorandum required under this paragraph.
            ``(8)(A) Each Federal land use authorization for an 
        electricity transmission facility shall be issued--
                    ``(i) for a duration, as determined by the 
                Secretary of Interior, commensurate with the 
                anticipated use of the facility; and
                    ``(ii) with appropriate authority to manage the 
                right-of-way for reliability and environmental 
                protection.
            ``(B) On the expiration of the authorization (including an 
        authorization issued before August 8, 2005), the authorization 
        shall be reviewed for renewal taking fully into account 
        reliance on such electricity infrastructure, recognizing the 
        importance of the authorization for public health, safety, and 
        economic welfare and as a legitimate use of Federal land.
            ``(9) In exercising the responsibilities under this 
        section, the Commission shall consult regularly with--
                    ``(A) electric reliability organizations (including 
                related regional entities) approved by the Commission; 
                and
                    ``(B) Transmission Organizations approved by the 
                Commission.''.

SEC. 152. NET METERING FOR FEDERAL AGENCIES.

    (a) Standard.--Subsection (b) of section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is amended by adding 
the following new paragraph at the end thereof:
            ``(6) Net metering for federal agencies.--Each electric 
        utility shall offer to arrange (either directly or through a 
        third party) to make interconnection and net metering available 
        to Federal Government agencies, offices, or facilities in 
        accordance with the requirements of section 115(j). The 
        standard under this paragraph shall apply only to electric 
        utilities that sold over 4,000,000 megawatt hours of 
        electricity in the preceding year to the ultimate consumers 
        thereof. In the case of a standard under this paragraph, a 
        period of 1 year after the date of the enactment of this 
        section shall be substituted for the 2-year period referred to 
        in other provisions of this section.''.
    (b) Special Rules.--Section 115 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding the 
following new subsection at the end thereof:
    ``(j) Net Metering for Federal Agencies.--(1) The standard under 
paragraph (6) of section 113(b) shall require that rates and charges 
and contract terms and conditions for the sale of electric energy to 
the Federal Government or agency shall be the same as the rates and 
charges and contract terms and conditions that would be applicable if 
the agency did not own or operate a qualified generation unit and use a 
net metering system.
    ``(2)(A) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall arrange to provide to the 
Government office or agency that qualifies for net metering an 
electrical energy meter capable of net metering and measuring, to the 
maximum extent practicable, the flow of electricity to or from the 
customer, using a single meter and single register, the cost of which 
shall be recovered from the customer.
    ``(B) In a case in which it is not practicable to provide a meter 
under subparagraph (A), the utility (either directly or through a third 
party) shall, at the expense of the utility install 1 or more of those 
electric energy meters.
    ``(3)(A) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall calculate the electric energy 
consumption for the Government office or agency using a net metering 
system that meets the requirements of this subsection and paragraph (6) 
of section 113(b) and shall measure the net electricity produced or 
consumed during the billing period using the metering installed in 
accordance with this paragraph.
    ``(B) If the electricity supplied by the retail electric supplier 
exceeds the electricity generated by the Government office or agency 
during the billing period, the Government office or agency shall be 
billed for the net electric energy supplied by the retail electric 
supplier in accordance with normal billing practices.
    ``(C) If electric energy generated by the Government office or 
agency exceeds the electric energy supplied by the retail electric 
supplier during the billing period, the Government office or agency 
shall be billed for the appropriate customer charges for that billing 
period and credited for the excess electric energy generated during the 
billing period, with the credit appearing as a kilowatt-hour credit on 
the bill for the following billing period.
    ``(D) Any kilowatt-hour credits provided to the Government office 
or agency as provided in this subsection shall be applied to the 
Government office or agency electric energy consumption on the 
following billing period bill (except for a billing period that ends in 
the next calendar year). At the beginning of each calendar year, any 
unused kilowatt-hour credits remaining from the preceding year will 
carry over to the new year.
    ``(4) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall offer a meter and retail 
billing arrangement that has time-differentiated rates. The kilowatt-
hour credit shall be based on the ratio representing the difference in 
retail rates for each time-of-use rate, or the credits shall be 
reflected on the bill of the Government office or agency as a monetary 
credit reflecting retail rates at the time of generation of the 
electric energy by the customer-generator.
    ``(5) The standard under paragraph (6) of section 113(b) shall 
require that the qualified generation unit, interconnection standards, 
and net metering system used by the Government office or agency shall 
meet all applicable safety and performance and reliability standards 
established by the National Electrical Code, the Institute of 
Electrical and Electronics Engineers, Underwriters Laboratories, and 
the American National Standards Institute.
    ``(6) The standard under paragraph (6) of section 113(b) shall 
require that electric utilities shall not make additional charges, 
including standby charges, for equipment or services for safety or 
performance that are in addition to those necessary to meet the other 
standards and requirements of this subsection and paragraph (6) of 
section 113(b).
    ``(7) For purposes of this subsection and paragraph (6) of section 
113(b):
            ``(A) The term `Government' means any office, facility, or 
        agency of the Federal Government.
            ``(B) The term `customer-generator' means the owner or 
        operator of a electricity generation unit.
            ``(C) The term `electric generation unit' means any 
        renewable electric generation unit that is owned, operated, or 
        sited on a Federal Government facility.
            ``(D) The term `net metering' means the process of--
                    ``(i) measuring the difference between the 
                electricity supplied to a customer-generator and the 
                electricity generated by the customer-generator that is 
                delivered to a utility at the same point of 
                interconnection during an applicable billing period; 
                and
                    ``(ii) providing an energy credit to the customer-
                generator in the form of a kilowatt-hour credit for 
                each kilowatt-hour of electricity produced by the 
                customer-generator from an electric generation unit.''.
    (c) Savings Provision.--If this section or a portion of this 
section is determined to be invalid or unenforceable, that shall not 
affect the validity or enforceability of any other provision of this 
Act.

SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC TRANSMISSION 
              MANUFACTURING PLANTS, QUALIFIED HIGH EFFICIENCY 
              TRANSMISSION PROPERTY, AND QUALIFIED ADVANCED ELECTRIC 
              TRANSMISSION PROPERTY.

    (a) Loan Guarantees Prior to September 30, 2011.--Section 1705(a) 
of the Energy Policy Act of 2005 (42 U.S.C. 16515(a)), as added by 
section 406 of the American Recovery and Reinvestment Act of 2009 
(Public Law 109-58; 119 Stat. 594) is amended by adding the following 
new paragraph at the end thereof:
            ``(5) The development, construction, acquisition, 
        retrofitting, or engineering integration of a qualified 
        advanced electric transmission manufacturing plant or the 
        construction of a qualified high efficiency transmission 
        property or a qualified advanced electric transmission property 
        (whether by construction of new facilities or the modification 
        of existing facilities). For purposes of this paragraph:
                    ``(A) The term `qualified advanced electric 
                transmission property' means any high voltage electric 
                transmission cable, related substation, converter 
                station, or other integrated facility that--
                            ``(i) utilizes advanced ultra low 
                        resistance superconductive material or other 
                        advanced technology that has been determined by 
                        the Secretary of Energy as--
                                    ``(I) reasonably likely to become 
                                commercially viable within 10 years 
                                after the date of enactment of this 
                                paragraph;
                                    ``(II) capable of reliably 
                                transmitting at least 5 gigawatts of 
                                high-voltage electric energy for 
                                distances greater than 300 miles with 
                                energy losses not exceeding 3 percent 
                                of the total power transported; and
                                    ``(III) not creating an 
                                electromagnetic field;
                            ``(ii) has been determined by an 
                        appropriate energy regulatory body, upon 
                        application, to be in the public interest and 
                        thereby eligible for inclusion in regulated 
                        rates; and
                            ``(iii) can be located safely and 
                        economically in a permanent underground right 
                        of way not to exceed 25 feet in width.
                The term `qualified advanced electric transmission 
                property' shall not include any property placed in 
                service after December 31, 2016.
                    ``(B)(i) The term `qualified high efficiency 
                transmission property' means any high voltage overhead 
                electric transmission line, related substation, or 
                other integrated facility that--
                            ``(I) utilizes advanced conductor core 
                        technology that--
                                    ``(aa) has been determined by the 
                                Secretary of Energy as reasonably 
                                likely to become commercially viable 
                                within 10 years after the date of 
                                enactment of this paragraph;
                                    ``(bb) is suitable for use on 
                                transmission lines up to 765kV; and
                                    ``(cc) exhibits power losses at 
                                least 30 percent lower than that of 
                                transmission lines using conventional 
                                `ACSR' conductors;
                            ``(II) has been determined by an 
                        appropriate energy regulatory body, upon 
                        application, to be in the public interest and 
                        thereby eligible for inclusion in regulated 
                        rates; and
                            ``(III) can be located safely and 
                        economically in a right of way not to exceed 
                        that used by conventional `ACSR' conductors; 
                        and
                    ``(ii) The term `qualified high efficiency 
                transmission property' shall not include any property 
                placed in service after December 31, 2016.
                    ``(C) The term `qualified advanced electric 
                transmission manufacturing plant' means any industrial 
                facility located in the United States which can be 
                equipped, re-equipped, expanded, or established to 
                produce in whole or in part qualified advanced electric 
                transmission property.''.
    (b) Additional Loan Guarantee Authority.--Section 1703 of the 
Energy Policy Act of 2005 (42 U.S.C. 16513) is amended by adding the 
following new paragraph at the end of subsection (b):
            ``(12) The development, construction, acquisition, 
        retrofitting, or engineering integration of a qualified 
        advanced electric transmission manufacturing plant or the 
        construction of a qualified advanced electric transmission 
        property (whether by construction of new facilities or the 
        modification of existing facilities). For purposes of this 
        paragraph, the terms `qualified advanced electric transmission 
        property' and `qualified advanced electric transmission 
        manufacturing plant' have the meanings provided by section 
        1705(a)(5).''.
    (c) Grants.--The Secretary of Energy is authorized to provide 
grants for up to 50 percent of costs incurred in connection with the 
development, construction, acquisition of components for, or 
engineering of a qualified advanced electric transmission property 
defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 
2005 (42 U.S.C. 16515(a)). Such grants may only be made to the first 
project which qualifies under that paragraph. There are authorized to 
be appropriated for purposes of this subsection not more than 
$100,000,000 for fiscal year 2010. The United States shall take no 
equity or other ownership interest in the qualified advanced electric 
transmission manufacturing plant or qualified advanced electric 
transmission property for which funding is provided under this 
subsection.

            Subtitle G--Technical Corrections to Energy Laws

SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND SECURITY ACT 
              OF 2007.

    (a) Title III--Energy Savings Through Improved Standards for 
Appliance and Lighting.--(1) Section 325(u) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(u)) (as amended by section 301(c) of 
the Energy Independence and Security Act of 2007 (121 Stat. 1550)) is 
amended--
                    (A) by redesignating paragraph (7) as paragraph 
                (4); and
                    (B) in paragraph (4) (as so redesignated), by 
                striking ``supplies is'' and inserting ``supply is''.
    (2) Section 302 of the Energy Independence and Security Act of 2007 
(121 Stat. 1551)) is amended--
            (A) in subsection (a), by striking ``end of the paragraph'' 
        and inserting ``end of subparagraph (A)''; and
            (B) in subsection (b), by striking ``6313(a)'' and 
        inserting ``6314(a)''.
    (3) Section 343(a)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(1)) (as amended by section 302(b) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1551)) is amended--
            (A) by striking ``Test procedures'' and all that follows 
        through ``At least once'' and inserting ``Test procedures.--At 
        least once''; and
            (B) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively (and by moving the margins of such 
        subparagraphs 2 ems to the left).
    (4) Section 342(a)(6) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(6)) (as amended by section 305(b)(2) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1554)) is amended--
            (A) in subparagraph (B)--
                    (i) by striking ``If the Secretary'' and inserting 
                the following:
                            ``(i) In general.--If the Secretary'';
                    (ii) by striking ``clause (ii)(II)'' and inserting 
                ``subparagraph (A)(ii)(II)'';
                    (iii) by striking ``clause (i)'' and inserting 
                ``subparagraph (A)(i)''; and
                    (iv) by adding at the end the following:
                            ``(ii) Factors.--In determining whether a 
                        standard is economically justified for the 
                        purposes of subparagraph (A)(ii)(II), the 
                        Secretary shall, after receiving views and 
                        comments furnished with respect to the proposed 
                        standard, determine whether the benefits of the 
                        standard exceed the burden of the proposed 
                        standard by, to the maximum extent practicable, 
                        considering--
                                    ``(I) the economic impact of the 
                                standard on the manufacturers and on 
                                the consumers of the products subject 
                                to the standard;
                                    ``(II) the savings in operating 
                                costs throughout the estimated average 
                                life of the product in the type (or 
                                class) compared to any increase in the 
                                price of, or in the initial charges 
                                for, or maintenance expenses of, the 
                                products that are likely to result from 
                                the imposition of the standard;
                                    ``(III) the total projected 
                                quantity of energy savings likely to 
                                result directly from the imposition of 
                                the standard;
                                    ``(IV) any lessening of the utility 
                                or the performance of the products 
                                likely to result from the imposition of 
                                the standard;
                                    ``(V) the impact of any lessening 
                                of competition, as determined in 
                                writing by the Attorney General, that 
                                is likely to result from the imposition 
                                of the standard;
                                    ``(VI) the need for national energy 
                                conservation; and
                                    ``(VII) other factors the Secretary 
                                considers relevant.
                            ``(iii) Administration.--
                                    ``(I) Energy use and efficiency.--
                                The Secretary may not prescribe any 
                                amended standard under this paragraph 
                                that increases the maximum allowable 
                                energy use, or decreases the minimum 
                                required energy efficiency, of a 
                                covered product.
                                    ``(II) Unavailability.--
                                            ``(aa) In general.--The 
                                        Secretary may not prescribe an 
                                        amended standard under this 
                                        subparagraph if the Secretary 
                                        finds (and publishes the 
                                        finding) that interested 
                                        persons have established by a 
                                        preponderance of the evidence 
                                        that a standard is likely to 
                                        result in the unavailability in 
                                        the United States in any 
                                        product type (or class) of 
                                        performance characteristics 
                                        (including reliability, 
                                        features, sizes, capacities, 
                                        and volumes) that are 
                                        substantially the same as those 
                                        generally available in the 
                                        United States at the time of 
                                        the finding of the Secretary.
                                            ``(bb) Other types or 
                                        classes.--The failure of some 
                                        types (or classes) to meet the 
                                        criterion established under 
                                        this subclause shall not affect 
                                        the determination of the 
                                        Secretary on whether to 
                                        prescribe a standard for the 
                                        other types or classes.''; and
            (B) in subparagraph (C)(iv), by striking ``An amendment 
        prescribed under this subsection'' and inserting 
        ``Notwithstanding subparagraph (D), an amendment prescribed 
        under this subparagraph''.
    (5) Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation 
Act (as added by section 306(c) of the Energy Independence and Security 
Act of 2007) is transferred and redesignated as clause (vi) of section 
342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by 
section 305(b)(2) of the Energy Independence and Security Act of 2007).
    (6) Section 340 of the Energy Policy and Conservation Act (42 
U.S.C. 6311) (as amended by sections 312(a)(2) and 314(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1564, 1569)) is 
amended by redesignating paragraphs (22) and (23) (as added by section 
314(a) of that Act) as paragraphs (23) and (24), respectively.
    (7) Section 345 of the Energy Policy and Conservation Act (42 
U.S.C. 6316) (as amended by section 312(e) of the Energy Independence 
and Security Act of 2007 (121 Stat. 1567)) is amended--
            (A) by striking ``subparagraphs (B) through (G)'' each 
        place it appears and inserting ``subparagraphs (B), (C), (D), 
        (I), (J), and (K)'';
            (B) by striking ``part A'' each place it appears and 
        inserting ``part B''; and
            (C) in subsection (h)(3), by striking ``section 342(f)(3)'' 
        and inserting ``section 342(f)(4)''.
    (8) Section 340(13) of the Energy Policy and Conservation Act (42 
U.S.C. 6311(13)) (as amended by section 313(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1568)) is amended--
            (A) by striking subparagraphs (A) and (B) and inserting the 
        following:
                    ``(A) In general.--The term `electric motor' means 
                any motor that is--
                            ``(i) a general purpose T-frame, single-
                        speed, foot-mounting, polyphase squirrel-cage 
                        induction motor of the National Electrical 
                        Manufacturers Association, Design A and B, 
                        continuous rated, operating on 230/460 volts 
                        and constant 60 Hertz line power as defined in 
                        NEMA Standards Publication MG1-1987; or
                            ``(ii) a motor incorporating the design 
                        elements described in clause (i), but is 
                        configured to incorporate one or more of the 
                        following variations--
                                    ``(I) U-frame motor;
                                    ``(II) NEMA Design C motor;
                                    ``(III) close-coupled pump motor;
                                    ``(IV) footless motor;
                                    ``(V) vertical solid shaft normal 
                                thrust motor (as tested in a horizontal 
                                configuration);
                                    ``(VI) 8-pole motor; or
                                    ``(VII) poly-phase motor with a 
                                voltage rating of not more than 600 
                                volts (other than 230 volts or 460 
                                volts, or both, or can be operated on 
                                230 volts or 460 volts, or both).''; 
                                and
            (B) by redesignating subparagraphs (C) through (I) as 
        subparagraphs (B) through (H), respectively.
    (9)(A) Section 342(b) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(b)) is amended--
    (i) in paragraph (1), by striking ``paragraph (2)'' and inserting 
``paragraph (3)'';
    (ii) by redesignating paragraphs (2) and (3) as paragraphs (3) and 
(4);
    (iii) by inserting after paragraph (1) the following:
            ``(2) Standards effective beginning december 19, 2010.--
                    ``(A) In general.--Except for definite purpose 
                motors, special purpose motors, and those motors 
                exempted by the Secretary under paragraph (3) and 
                except as provided for in subparagraphs (B), (C), and 
                (D), each electric motor manufactured with power 
                ratings from 1 to 200 horsepower (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency of not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-12.
                    ``(B) Fire pump electric motors.--Except for those 
                motors exempted by the Secretary under paragraph (3), 
                each fire pump electric motor manufactured with power 
                ratings from 1 to 200 horsepower (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency that is not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-11.
                    ``(C) NEMA design b electric motors.--Except for 
                those motors exempted by the Secretary under paragraph 
                (3), each NEMA Design B electric motor with power 
                ratings of more than 200 horsepower, but not greater 
                than 500 horsepower, manufactured (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency of not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-11.
                    ``(D) Motors incorporating certain design 
                elements.--Except for those motors exempted by the 
                Secretary under paragraph (3), each electric motor 
                described in section 340(13)(A)(ii) manufactured with 
                power ratings from 1 to 200 horsepower (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency of not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-
                11.''; and
    (iv) in paragraph (3) (as redesignated by clause (ii)), by striking 
``paragraph (1)'' each place it appears in subparagraphs (A) and (D) 
and inserting ``paragraphs (1) and (2)''.
    (B) Section 313 of the Energy Independence and Security Act of 2007 
(121 Stat. 1568) is repealed.
    (C) The amendments made by--
            (i) subparagraph (A) shall take effect on December 19, 
        2010; and
            (ii) subparagraph (B) shall take effect on December 19, 
        2007.
    (10) Section 321(30)(D)(i)(III) of the Energy Policy and 
Conservation Act (42 U.S.C. 6291(30)(D)(i)(III)) (as amended by section 
321(a)(1)(A) of the Energy Independence and Security Act of 2007 (121 
Stat. 1574)) is amended by inserting before the semicolon the 
following: ``or, in the case of a modified spectrum lamp, not less than 
232 lumens and not more than 1,950 lumens''.
    (11) Section 321(30)(T) of the Energy Policy and Conservation Act 
(42 U.S.C. 6291(30)(T) (as amended by section 321(a)(1)(B) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1574)) is 
amended--
            (A) in clause (i)--
                    (i) by striking the comma after ``household 
                appliance'' and inserting ``and''; and
                    (ii) by striking ``and is sold at retail,''; and
            (B) in clause (ii), by inserting ``when sold at retail,'' 
        before ``is designated''.
    (12) Section 325 of the Energy Policy and Conservation Act (42 
U.S.C. 6295) (as amended by sections 321(a)(3)(A) and 322(b) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1577, 1588)) is 
amended by striking subsection (i) and inserting the following:
    ``(i) General Service Fluorescent Lamps, General Service 
Incandescent Lamps, Intermediate Base Incandescent Lamps, Candelabra 
Base Incandescent Lamps, and Incandescent Reflector Lamps.--
            ``(1) Energy efficiency standards.--
                    ``(A) In general.--Each of the following general 
                service fluorescent lamps, general service incandescent 
                lamps, intermediate base incandescent lamps, candelabra 
                base incandescent lamps, and incandescent reflector 
                lamps manufactured after the effective date specified 
                in the tables listed in this subparagraph shall meet or 
                exceed the following lamp efficacy, new maximum 
                wattage, and CRI standards:


                                               ``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                        35 W              45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------


                     ``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------



                                      ``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------



                             ``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------

                    ``(B) Application.--
                            ``(i) Application criteria.--This 
                        subparagraph applies to each lamp that--
                                    ``(I) is intended for a general 
                                service or general illumination 
                                application (whether incandescent or 
                                not);
                                    ``(II) has a medium screw base or 
                                any other screw base not defined in 
                                ANSI C81.61-2006;
                                    ``(III) is capable of being 
                                operated at a voltage at least 
                                partially within the range of 110 to 
                                130 volts; and
                                    ``(IV) is manufactured or imported 
                                after December 31, 2011.
                            ``(ii) Requirement.--For purposes of this 
                        paragraph, each lamp described in clause (i) 
                        shall have a color rendering index that is 
                        greater than or equal to--
                                    ``(I) 80 for nonmodified spectrum 
                                lamps; or
                                    ``(II) 75 for modified spectrum 
                                lamps.
                    ``(C) Candelabra incandescent lamps and 
                intermediate base incandescent lamps.--
                            ``(i) Candelabra base incandescent lamps.--
                        Effective beginning January 1, 2012, a 
                        candelabra base incandescent lamp shall not 
                        exceed 60 rated watts.
                            ``(ii) Intermediate base incandescent 
                        lamps.--Effective beginning January 1, 2012, an 
                        intermediate base incandescent lamp shall not 
                        exceed 40 rated watts.
                    ``(D) Exemptions.--
                            ``(i) Statutory exemptions.--The standards 
                        specified in subparagraph (A) shall not apply 
                        to the following types of incandescent 
                        reflector lamps:
                                    ``(I) Lamps rated at 50 watts or 
                                less that are ER30, BR30, BR40, or ER40 
                                lamps.
                                    ``(II) Lamps rated at 65 watts that 
                                are BR30, BR40, or ER40 lamps.
                                    ``(III) R20 incandescent reflector 
                                lamps rated 45 watts or less.
                            ``(ii) Administrative exemptions.--
                                    ``(I) Petition.--Any person may 
                                petition the Secretary for an exemption 
                                for a type of general service lamp from 
                                the requirements of this subsection.
                                    ``(II) Criteria.--The Secretary may 
                                grant an exemption under subclause (I) 
                                only to the extent that the Secretary 
                                finds, after a hearing and opportunity 
                                for public comment, that it is not 
                                technically feasible to serve a 
                                specialized lighting application (such 
                                as a military, medical, public safety, 
                                or certified historic lighting 
                                application) using a lamp that meets 
                                the requirements of this subsection.
                                    ``(III) Additional criterion.--To 
                                grant an exemption for a product under 
                                this clause, the Secretary shall 
                                include, as an additional criterion, 
                                that the exempted product is unlikely 
                                to be used in a general service 
                                lighting application.
                    ``(E) Extension of coverage.--
                            ``(i) Petition.--Any person may petition 
                        the Secretary to establish standards for lamp 
                        shapes or bases that are excluded from the 
                        definition of general service lamps.
                            ``(ii) Increased sales of exempted lamps.--
                        The petition shall include evidence that the 
                        availability or sales of exempted incandescent 
                        lamps have increased significantly since the 
                        date on which the standards on general service 
                        incandescent lamps were established.
                            ``(iii) Criteria.--The Secretary shall 
                        grant a petition under clause (i) if the 
                        Secretary finds that--
                                    ``(I) the petition presents 
                                evidence that demonstrates that 
                                commercial availability or sales of 
                                exempted incandescent lamp types have 
                                increased significantly since the 
                                standards on general service lamps were 
                                established and likely are being widely 
                                used in general lighting applications; 
                                and
                                    ``(II) significant energy savings 
                                could be achieved by covering exempted 
                                products, as determined by the 
                                Secretary based in part on sales data 
                                provided to the Secretary from 
                                manufacturers and importers.
                            ``(iv) No presumption.--The grant of a 
                        petition under this subparagraph shall create 
                        no presumption with respect to the 
                        determination of the Secretary with respect to 
                        any criteria under a rulemaking conducted under 
                        this section.
                            ``(v) Expedited proceeding.--If the 
                        Secretary grants a petition for a lamp shape or 
                        base under this subparagraph, the Secretary 
                        shall--
                                    ``(I) conduct a rulemaking to 
                                determine standards for the exempted 
                                lamp shape or base; and
                                    ``(II) complete the rulemaking not 
                                later than 18 months after the date on 
                                which notice is provided granting the 
                                petition.
                    ``(F) Effective dates.--
                            ``(i) In general.--In this paragraph, 
                        except as otherwise provided in a table 
                        contained in subparagraph (A) or in clause 
                        (ii), the term `effective date' means the last 
                        day of the month specified in the table that 
                        follows October 24, 1992.
                            ``(ii) Special effective dates.--
                                    ``(I) ER, br, and bpar lamps.--The 
                                standards specified in subparagraph (A) 
                                shall apply with respect to ER 
                                incandescent reflector lamps, BR 
                                incandescent reflector lamps, BPAR 
                                incandescent reflector lamps, and 
                                similar bulb shapes on and after 
                                January 1, 2008, or the date that is 
                                180 days after the date of enactment of 
                                the Energy Independence and Security 
                                Act of 2007.
                                    ``(II) Lamps between 2.25-2.75 
                                inches in diameter.--The standards 
                                specified in subparagraph (A) shall 
                                apply with respect to incandescent 
                                reflector lamps with a diameter of more 
                                than 2.25 inches, but not more than 
                                2.75 inches, on and after the later of 
                                January 1, 2008, or the date that is 
                                180 days after the date of enactment of 
                                the Energy Independence and Security 
                                Act of 2007.
            ``(2) Compliance with existing law.--Notwithstanding 
        section 332(a)(5) and section 332(b), it shall not be unlawful 
        for a manufacturer to sell a lamp that is in compliance with 
        the law at the time the lamp was manufactured.
            ``(3) Rulemaking before october 24, 1995.--
                    ``(A) In general.--Not later than 36 months after 
                October 24, 1992, the Secretary shall initiate a 
                rulemaking procedure and shall publish a final rule not 
                later than the end of the 54-month period beginning on 
                October 24, 1992, to determine whether the standards 
                established under paragraph (1) should be amended.
                    ``(B) Administration.--The rule shall contain the 
                amendment, if any, and provide that the amendment shall 
                apply to products manufactured on or after the 36-month 
                period beginning on the date on which the final rule is 
                published.
            ``(4) Rulemaking before october 24, 2000.--
                    ``(A) In general.--Not later than 8 years after 
                October 24, 1992, the Secretary shall initiate a 
                rulemaking procedure and shall publish a final rule not 
                later than 9 years and 6 months after October 24, 1992, 
                to determine whether the standards in effect for 
                fluorescent lamps and incandescent lamps should be 
                amended.
                    ``(B) Administration.--The rule shall contain the 
                amendment, if any, and provide that the amendment shall 
                apply to products manufactured on or after the 36-month 
                period beginning on the date on which the final rule is 
                published.
            ``(5) Rulemaking for additional general service fluorescent 
        lamps.--
                    ``(A) In general.--Not later than the end of the 
                24-month period beginning on the date labeling 
                requirements under section 324(a)(2)(C) become 
                effective, the Secretary shall--
                            ``(i) initiate a rulemaking procedure to 
                        determine whether the standards in effect for 
                        fluorescent lamps and incandescent lamps should 
                        be amended so that the standards would be 
                        applicable to additional general service 
                        fluorescent lamps; and
                            ``(ii) publish, not later than 18 months 
                        after initiating the rulemaking, a final rule 
                        including the amended standards, if any.
                    ``(B) Administration.--The rule shall provide that 
                the amendment shall apply to products manufactured 
                after a date which is 36 months after the date on which 
                the rule is published.
            ``(6) Standards for general service lamps.--
                    ``(A) Rulemaking before january 1, 2014.--
                            ``(i) In general.--Not later than January 
                        1, 2014, the Secretary shall initiate a 
                        rulemaking procedure to determine whether--
                                    ``(I) standards in effect for 
                                general service lamps should be 
                                amended; and
                                    ``(II) the exclusions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                excluded lamp sales collected by the 
                                Secretary from manufacturers.
                            ``(ii) Scope.--The rulemaking--
                                    ``(I) shall not be limited to 
                                incandescent lamp technologies; and
                                    ``(II) shall include consideration 
                                of a minimum standard of 45 lumens per 
                                watt for general service lamps.
                            ``(iii) Amended standards.--If the 
                        Secretary determines that the standards in 
                        effect for general service lamps should be 
                        amended, the Secretary shall publish a final 
                        rule not later than January 1, 2017, with an 
                        effective date that is not earlier than 3 years 
                        after the date on which the final rule is 
                        published.
                            ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                    ``(I) the impact of any amendment 
                                on manufacturers, retiring and 
                                repurposing existing equipment, 
                                stranded investments, labor contracts, 
                                workers, and raw materials; and
                                    ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing strategies.
                            ``(v) Backstop requirement.--If the 
                        Secretary fails to complete a rulemaking in 
                        accordance with clauses (i) through (iv) or if 
                        the final rule does not produce savings that 
                        are greater than or equal to the savings from a 
                        minimum efficacy standard of 45 lumens per 
                        watt, effective beginning January 1, 2020, the 
                        Secretary shall prohibit the manufacture of any 
                        general service lamp that does not meet a 
                        minimum efficacy standard of 45 lumens per 
                        watt.
                            ``(vi) State preemption.--Neither section 
                        327(c) nor any other provision of law shall 
                        preclude California or Nevada from adopting, 
                        effective beginning on or after January 1, 
                        2018--
                                    ``(I) a final rule adopted by the 
                                Secretary in accordance with clauses 
                                (i) through (iv);
                                    ``(II) if a final rule described in 
                                subclause (I) has not been adopted, the 
                                backstop requirement under clause (v); 
                                or
                                    ``(III) in the case of California, 
                                if a final rule described in subclause 
                                (I) has not been adopted, any 
                                California regulations relating to 
                                these covered products adopted pursuant 
                                to State statute in effect as of the 
                                date of enactment of the Energy 
                                Independence and Security Act of 2007.
                    ``(B) Rulemaking before january 1, 2020.--
                            ``(i) In general.--Not later than January 
                        1, 2020, the Secretary shall initiate a 
                        rulemaking procedure to determine whether--
                                    ``(I) standards in effect for 
                                general service lamps should be 
                                amended; and
                                    ``(II) the exclusions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                excluded lamp sales data collected by 
                                the Secretary from manufacturers.
                            ``(ii) Scope.--The rulemaking shall not be 
                        limited to incandescent lamp technologies.
                            ``(iii) Amended standards.--If the 
                        Secretary determines that the standards in 
                        effect for general service lamps should be 
                        amended, the Secretary shall publish a final 
                        rule not later than January 1, 2022, with an 
                        effective date that is not earlier than 3 years 
                        after the date on which the final rule is 
                        published.
                            ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                    ``(I) the impact of any amendment 
                                on manufacturers, retiring and 
                                repurposing existing equipment, 
                                stranded investments, labor contracts, 
                                workers, and raw materials; and
                                    ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing strategies.
            ``(7) Federal actions.--
                    ``(A) Comments of secretary.--
                            ``(i) In general.--With respect to any lamp 
                        to which standards are applicable under this 
                        subsection or any lamp specified in section 
                        346, the Secretary shall inform any Federal 
                        entity proposing actions that would adversely 
                        impact the energy consumption or energy 
                        efficiency of the lamp of the energy 
                        conservation consequences of the action.
                            ``(ii) Consideration.--The Federal entity 
                        shall carefully consider the comments of the 
                        Secretary.
                    ``(B) Amendment of standards.--Notwithstanding 
                section 325(n)(1), the Secretary shall not be 
                prohibited from amending any standard, by rule, to 
                permit increased energy use or to decrease the minimum 
                required energy efficiency of any lamp to which 
                standards are applicable under this subsection if the 
                action is warranted as a result of other Federal action 
                (including restrictions on materials or processes) that 
                would have the effect of either increasing the energy 
                use or decreasing the energy efficiency of the product.
            ``(8) Compliance.--
                    ``(A) In general.--Not later than the date on which 
                standards established pursuant to this subsection 
                become effective, or, with respect to high-intensity 
                discharge lamps covered under section 346, the 
                effective date of standards established pursuant to 
                that section, each manufacturer of a product to which 
                the standards are applicable shall file with the 
                Secretary a laboratory report certifying compliance 
                with the applicable standard for each lamp type.
                    ``(B) Contents.--The report shall include the lumen 
                output and wattage consumption for each lamp type as an 
                average of measurements taken over the preceding 12-
                month period.
                    ``(C) Other lamp types.--With respect to lamp types 
                that are not manufactured during the 12-month period 
                preceding the date on which the standards become 
                effective, the report shall--
                            ``(i) be filed with the Secretary not later 
                        than the date that is 12 months after the date 
                        on which manufacturing is commenced; and
                            ``(ii) include the lumen output and wattage 
                        consumption for each such lamp type as an 
                        average of measurements taken during the 12-
                        month period.''.
    (13) Section 325(l)(4)(A) of the Energy Policy and Conservation Act 
(42 U.S.C. 6295(l)(4)(A)) (as amended by section 321(a)(3)(B) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1581)) is 
amended by striking ``only''.
    (14) Section 327(b)(1)(B) of the Energy Policy and Conservation Act 
(42 U.S.C. 6297(b)(1)(B)) (as amended by section 321(d)(3) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1585)) is 
amended--
            (A) in clause (i), by inserting ``and'' after the semicolon 
        at the end;
            (B) in clause (ii), by striking ``; and'' and inserting a 
        period; and
            (C) by striking clause (iii).
    (15) Section 321(e) of the Energy Independence and Security Act of 
2007 (121 Stat. 1586) is amended--
            (A) in the matter preceding paragraph (1), by striking ``is 
        amended'' and inserting ``(as amended by section 306(b)) is 
        amended''; and
            (B) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) in paragraph (5), by striking `or' after the 
        semicolon at the end;
            ``(2) in paragraph (6), by striking the period at the end 
        and inserting `; or'; and''.
    (16) Section 332(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6302(a)) (as amended by section 321(e) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1586)) is amended by 
redesignating the second paragraph (6) as paragraph (7).
    (17) Section 321(30)(C)(ii) of the Energy Policy and Conservation 
Act (42 U.S.C. 6291(30)(C)(ii)) (as amended by section 322(a)(1)(B) of 
the Energy Independence and Security Act of 2007 (121 Stat. 1587)) is 
amended by inserting a period after ``40 watts or higher''.
    (18) Section 322(b) of the Energy Independence and Security Act of 
2007 (121 Stat. 1588)) is amended by striking ``6995(i)'' and inserting 
``6295(i)''.
    (19) Section 327(c) of the Energy Policy and Conservation Act (42 
U.S.C. 6297(c)) (as amended by sections 324(f) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1594)) is amended--
            (A) in paragraph (6), by striking ``or'' after the 
        semicolon at the end;
            (B) in paragraph (8)(B), by striking ``and'' after the 
        semicolon at the end;
            (C) in paragraph (9)--
                    (i) by striking ``except that--'' and all that 
                follows through ``if the Secretary fails to issue'' and 
                inserting ``except that if the Secretary fails to 
                issue'';
                    (ii) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively (and by moving 
                the margins of such subparagraphs 2 ems to the left); 
                and
                    (iii) by striking the period at the end and 
                inserting a semicolon; and
            (D) by adding at the end the following:
            ``(10) is a regulation for general service lamps that 
        conforms with Federal standards and effective dates;
            ``(11) is an energy efficiency standard for general service 
        lamps enacted into law by the State of Nevada prior to December 
        19, 2007, if the State has not adopted the Federal standards 
        and effective dates pursuant to subsection (b)(1)(B)(ii); or''.
    (20) Section 325(b) of the Energy Independence and Security Act of 
2007 (121 Stat. 1596)) is amended by striking ``6924(c)'' and inserting 
``6294(c)''.
    (b) Title IV--Energy Savings in Buildings and Industry.--(1) 
Section 401 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17061) is amended--
            (A) in paragraph (2), by striking ``484'' and inserting 
        ``494''; and
            (B) in paragraph (13), by striking ``Agency'' and inserting 
        ``Administration''.
    (2) Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) (as amended by section 411(a) of the Energy Independence 
and Security Act of 2007 (121 Stat. 1600)) is amended by striking 1 of 
the 2 periods at the end of paragraph (5).
    (3) Section 305(a)(3)(D)(i) of the Energy Conservation and 
Production Act (42 U.S.C. 6834(a)(3)(D)(i)) (as amended by section 
433(a) of the Energy Independence and Security Act of 2007 (121 Stat. 
1612)) is amended--
            (A) in subclause (I)--
                    (i) by striking ``in fiscal year 2003 (as measured 
                by Commercial Buildings Energy Consumption Survey or 
                Residential Energy Consumption Survey data from the 
                Energy Information Agency'' and inserting ``as measured 
                by the calendar year 2003 Commercial Buildings Energy 
                Consumption Survey or the calendar year 2005 
                Residential Energy Consumption Survey data from the 
                Energy Information Administration''; and
                    (ii) in the table at the end, by striking ``Fiscal 
                Year'' and inserting ``Calendar Year''; and
            (B) in subclause (II)--
                    (i) by striking ``(II) Upon petition'' and 
                inserting the following:
                                    ``(II) Downward adjustment of 
                                numeric requirement.--
                                            ``(aa) In general.--On 
                                        petition''; and
                    (ii) by striking the last sentence and inserting 
                the following:
                                            ``(bb) Exceptions to 
                                        requirement for concurrence of 
                                        secretary.--

                                                    ``(AA) In 
                                                general.--The 
                                                requirement to petition 
                                                and obtain the 
                                                concurrence of the 
                                                Secretary under this 
                                                subclause shall not 
                                                apply to any Federal 
                                                building with respect 
                                                to which the 
                                                Administrator of 
                                                General Services is 
                                                required to transmit a 
                                                prospectus to Congress 
                                                under section 3307 of 
                                                title 40, United States 
                                                Code, or to any other 
                                                Federal building 
                                                designed, constructed, 
                                                or renovated by the 
                                                Administrator if the 
                                                Administrator 
                                                certifies, in writing, 
                                                that meeting the 
                                                applicable numeric 
                                                requirement under 
                                                subclause (I) with 
                                                respect to the Federal 
                                                building would be 
                                                technically 
                                                impracticable in light 
                                                of the specific 
                                                functional needs for 
                                                the building.

                                                    ``(BB) 
                                                Adjustment.--In the 
                                                case of a building 
                                                described in subitem 
                                                (AA), the Administrator 
                                                may adjust the 
                                                applicable numeric 
                                                requirement of 
                                                subclause (I) downward 
                                                with respect to the 
                                                building.''.

    (4) Section 436(c)(3) of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17092(c)(3)) is amended by striking ``474'' and 
inserting ``494''.
    (5) Section 440 of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17096) is amended by striking ``and 482''.
    (6) Section 373(c) of the Energy Policy and Conservation Act (42 
U.S.C. 6343(c)) (as amended by section 451(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1628)) is amended by 
striking ``Administrator'' and inserting ``Secretary''.
    (c) Date of Enactment.--Section 1302 of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17382) is amended in the first sentence 
by striking ``enactment'' and inserting ``the date of enactment of this 
Act''.
    (d) Reference.--Section 1306(c)(3) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17386(c)(3)) is amended by striking 
``section 1307 (paragraph (17) of section 111(d) of the Public Utility 
Regulatory Policies Act of 1978)'' and inserting ``paragraph (19) of 
section 111(d) of the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2621(d))''.
    (e) Effective Date.--This section and the amendments made by this 
section take effect as if included in the Energy Independence and 
Security Act of 2007 (Public Law 110-140; 121 Stat. 1492).

SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.

    (a) Title I--Energy Efficiency.--Section 325(g)(8)(C)(ii) of the 
Energy Policy and Conservation Act (42 U.S.C. 6295(g)(8)(C)(ii)) (as 
added by section 135(c)(2)(B) of the Energy Policy Act of 2005) is 
amended by striking ``20 F'' and inserting ``-20 F''.
    (b) Effective Date.--This section and the amendments made by this 
section take effect as if included in the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 594).

         Subtitle H--Energy and Efficiency Centers and Research

SEC. 171. ENERGY INNOVATION HUBS.

    (a) Purpose.--The Secretary shall carry out a program to establish 
Energy Innovation Hubs to enhance the Nation's economic, environmental, 
and energy security by promoting commercial application of clean, 
indigenous energy alternatives to oil and other fossil fuels, reducing 
greenhouse gas emissions, and ensuring that the United States maintains 
a technological lead in the development and commercial application of 
state-of-the-art energy technologies. To achieve these purposes the 
program shall--
            (1) leverage the expertise and resources of the university 
        and private research communities, industry, venture capital, 
        national laboratories, and other participants in energy 
        innovation to support cross-disciplinary research and 
        development in areas not being served by the private sector in 
        order to develop and transfer innovative clean energy 
        technologies into the marketplace;
            (2) expand the knowledge base and human capital necessary 
        to transition to a low-carbon economy; and
            (3) promote regional economic development by cultivating 
        clusters of clean energy technology firms, private research 
        organizations, suppliers, and other complementary groups and 
        businesses.
    (b) Definitions.--For purposes of this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act 
        (as added by section 311 of this Act).
            (2) Clean energy technology.--The term ``clean energy 
        technology'' means a technology that--
                    (A) produces energy from solar, wind, geothermal, 
                biomass, tidal, wave, ocean, and other renewable energy 
                resources (as such term is defined in section 610 of 
                the Public Utility Regulatory Policies Act of 1978);
                    (B) more efficiently transmits, distributes, or 
                stores energy;
                    (C) enhances energy efficiency for buildings and 
                industry, including combined heat and power;
                    (D) enables the development of a Smart Grid (as 
                described in section 1301 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17381)), including 
                integration of renewable energy resources and 
                distributed generation, demand response, demand side 
                management, and systems analysis;
                    (E) produces an advanced or sustainable material 
                with energy or energy efficiency applications;
                    (F) enhances water security through improved water 
                management, conservation, distribution, and end use 
                applications; or
                    (G) improves energy efficiency for transportation, 
                including electric vehicles.
            (3) Cluster.--The term ``cluster'' means a network of 
        entities directly involved in the research, development, 
        finance, and commercialization of clean energy technologies 
        whose geographic proximity facilitates utilization and sharing 
        of skilled human resources, infrastructure, research 
        facilities, educational and training institutions, venture 
        capital, and input suppliers.
            (4) Hub.--The term ``Hub'' means an Energy Innovation Hub 
        established in accordance with this section.
            (5) Project.--The term ``project'' means an activity with 
        respect to which a Hub provides support under subsection (e).
            (6) Qualifying entity.--The term ``qualifying entity'' 
        means each of the following:
                    (A) A research university.
                    (B) A State or Federal institution with a focus on 
                the advancement of clean energy technologies.
                    (C) A nongovernmental organization with research or 
                commercialization expertise in clean energy technology 
                development.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (8) Technology development focus.--The term ``technology 
        development focus'' means the unique technology development 
        areas in which a Hub will specialize, and may include solar 
        electricity, fuels from solar energy, batteries and energy 
        storage, electricity grid systems and devices, energy efficient 
        building systems and design, advanced materials, modeling and 
        simulation, and other clean energy technology development areas 
        designated by the Secretary.
            (9) Translational research.--The term ``translational 
        research'' means coordination of basic or applied research with 
        technical and commercial applications to enable promising 
        discoveries or inventions to attract investment sufficient for 
        market penetration and diffusion.
            (10) Vintage year.--The term ``vintage year'' has the 
        meaning given that term in section 700 of the Clean Air Act (as 
        added by section 312 of this Act).
    (c) Role of the Secretary.--The Secretary shall--
            (1) have ultimate responsibility for, and oversight of, all 
        aspects of the program under this section;
            (2) provide for the distribution of allowances allocated 
        under section 782(h)(1) of the Clean Air Act (as added by 
        section 321 of this Act) to support the establishment of 8 
        Hubs, each with a unique designated technology development 
        focus, pursuant to this section;
            (3) coordinate the innovation activities of Hubs with those 
        occurring through other Department of Energy entities, 
        including the National Laboratories, the Advanced Research 
        Projects Agency--Energy, and Energy Frontier Research 
        Collaborations, and within industry, including by annually--
                    (A) issuing guidance regarding national energy 
                research and development priorities and strategic 
                objectives; and
                    (B) convening a conference of staff of the 
                Department of Energy and representatives from such 
                other entities to share research results, program 
                plans, and opportunities for collaboration.
    (d) Entities Eligible for Support.--A consortium shall be eligible 
to receive allowances to support the establishment of a Hub under this 
section if--
            (1) it is composed of--
                    (A) 2 research universities with a combined annual 
                research budget of $500,000,000; and
                    (B) 1 or more additional qualifying entities;
            (2) its members have established a binding agreement that 
        documents--
                    (A) the structure of the partnership agreement;
                    (B) a governance and management structure to enable 
                cost-effective implementation of the program;
                    (C) an intellectual property management policy;
                    (D) a conflicts of interest policy consistent with 
                subsection (e)(4);
                    (E) an accounting structure that meets the 
                requirements of the Department of Energy and can be 
                audited under subsection (f)(5); and
                    (F) that it has an Advisory Board consistent with 
                subsection (e)(3);
            (3) it receives financial contributions from States, 
        consortium participants, or other non-Federal sources, to be 
        used to support project awards pursuant to subsection (e);
            (4) it is part of an existing cluster or demonstrates high 
        potential to develop a new cluster; and
            (5) it operates as a nonprofit organization.
    (e) Energy Innovation Hubs.--
            (1) Role.--Hubs receiving allowances under this section 
        shall support translational research activities leading to 
        commercial application of clean energy technologies, in 
        accordance with the purposes of this section, through issuance 
        of awards to projects managed by qualifying entities and other 
        entities meeting the Hub's project criteria, including national 
        laboratories. Each such Hub shall--
                    (A) develop and publish for public review and 
                comment proposed plans, programs, project selection 
                criteria, and terms for individual project awards under 
                this subsection;
                    (B) submit an annual report to the Secretary 
                summarizing the Hub's activities, organizational 
                expenditures, and Board members, which shall include a 
                certification of compliance with conflict of interest 
                policies and a description of each project in the 
                research portfolio;
                    (C) establish policies--
                            (i) regarding intellectual property 
                        developed as a result of Hub awards and other 
                        forms of technology support that encourage 
                        individual ingenuity and invention while 
                        speeding technology transfer and facilitating 
                        the establishment of rapid commercialization 
                        pathways;
                            (ii) to prevent resources provided to the 
                        Hub from being used to displace private sector 
                        investment otherwise likely to occur, including 
                        investment from private sector entities that 
                        are members of the consortium;
                            (iii) to facilitate the participation of 
                        private investment firms or other private 
                        entities that invest in clean energy 
                        technologies to perform due diligence on award 
                        proposals, to participate in the award review 
                        process, and to provide guidance to projects 
                        supported by the Hub; and
                            (iv) to facilitate the participation of 
                        entrepreneurs with a demonstrated history of 
                        developing and commercializing clean energy 
                        technologies;
                    (D) oversee project solicitations, review proposed 
                projects, and select projects for awards; and
                    (E) monitor project implementation.
            (2) Distribution of awards by hubs.--A Hub shall distribute 
        awards under this subsection to support clean energy technology 
        projects conducting translational research and related 
        activities, provided that at least 50 percent of such support 
        shall be provided to projects related to the Hub's technology 
        development focus.
            (3) Advisory boards.--
                    (A) In general.--Each Hub shall establish an 
                Advisory Board, the members of which shall have 
                extensive and relevant scientific, technical, industry, 
                financial, or research management expertise. The 
                Advisory Board shall review the Hub's proposed plans, 
                programs, project selection criteria, and projects and 
                shall ensure that projects selected for awards meet the 
                conflict of interest policies of the Hub. Advisory 
                Board members other than those representing consortium 
                members shall serve for no more than 3 years. All 
                Advisory Board members shall comply with the Hub's 
                conflict of interest policies and procedures.
                    (B) Members.--Each Advisory Board shall consist 
                of--
                            (i) 5 members selected by the consortium's 
                        research universities;
                            (ii) 2 members selected by the consortium's 
                        other qualifying entities;
                            (iii) 2 members selected at large by other 
                        Advisory Board members to represent the 
                        entrepreneur and venture capital communities; 
                        and
                            (iv) 1 member appointed by the Secretary.
                    (D) Compensation.--Members of an Advisory Board may 
                receive reimbursement for travel expenses and a 
                reasonable stipend.
            (4) Conflict of interest.--
                    (A) Procedures.--Hubs shall establish procedures to 
                ensure that any employee or consortia designee for Hub 
                activities who serves in a decisionmaking capacity 
                shall--
                            (i) disclose any financial interests in, or 
                        financial relationships with, applicants for or 
                        recipients of awards under this subsection, 
                        including those of his or her spouse or minor 
                        child, unless such relationships or interests 
                        would be considered to be remote or 
                        inconsequential; and
                            (ii) recuse himself or herself from any 
                        funding decision for projects in which he or 
                        she has a personal financial interest.
                    (B) Disqualification and revocation.--The Secretary 
                may disqualify an application or revoke allowances 
                distributed to the Hub or awards provided under this 
                subsection, if cognizant officials of the Hub fail to 
                comply with procedures required under subparagraph (A).
    (f) Distribution of Allowances to Energy Innovation Hubs.--
            (1) Distribution of allowances.--Not later than September 
        30 of 2011 and each calendar year thereafter through 2049, the 
        Secretary shall, in accordance with the requirements of this 
        section, distribute to eligible consortia allowances allocated 
        for the following vintage year under section 782(h)(1) of the 
        Clean Air Act (as added by section 321 of this Act). Not less 
        than 10 percent and not more than 30 percent of the allowances 
        available for distribution in any given year shall be 
        distributed to support any individual Hub under this section.
            (2) Selection and schedule.--Allowances to support the 
        establishment of a Hub shall be distributed to eligible 
        consortia (as defined in subsection (d)) selected through a 
        competitive process. Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        from eligible consortia to establish Hubs, which shall be 
        submitted not later than 180 days after the date of enactment 
        of this Act. The Secretary shall select the program consortia 
        not later than 270 days after the date of enactment of this 
        Act. For at least 3 awards to consortia under this section, the 
        Secretary shall give special consideration to applications in 
        which 1 or more of the institutions under subsection (d)(1)(A) 
        are 1890 Land Grant Institutions (as defined in section 2 of 
        the Agricultural Research, Extension, and Education Reform Act 
        of 1998 (7 U.S.C. 7061)), Predominantly Black Institutions (as 
        defined in section 318 of the Higher Education Act of 1965 (20 
        U.S.C. 1059e)), Tribal Colleges or Universities (as defined in 
        section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b)), or Hispanic Serving Institutions (as defined in 
        section 318 of the Higher Education Act of 1965 (20 U.S.C. 
        1059e)).
            (3) Amount and term of awards.--For each Hub selected to 
        receive an award under this subsection, the Secretary shall 
        define a quantity of allowances that shall be distributed to 
        such Hub each year for an initial period not to exceed 5 years. 
        The Secretary may extend the term of such award by up to 5 
        additional years, and a Hub may compete to receive an increase 
        in the quantity of allowances per year that it shall receive 
        during any such extension. A Hub shall be eligible to compete 
        for a new award after the expiration of the term of any award, 
        including any extension of such term, under this subsection.
            (4) Use of allowances.--Allowances distributed under this 
        section shall be used exclusively to support project awards 
        pursuant to subsection (e)(1) and (2), provided that a Hub may 
        use not more than 10 percent of the value of such allowances 
        for its administrative expenses related to making such awards. 
        Allowances distributed under this section shall not be used for 
        construction of new buildings or facilities for Hubs, and 
        construction of new buildings or facilities shall not be 
        considered as part of the non-Federal share of a cost sharing 
        agreement under this section.
            (5) Audit.--Each Hub shall conduct, in accordance with such 
        requirements as the Secretary may prescribe, an annual audit to 
        determine the extent to which allowances distributed to the Hub 
        under this subsection, and awards under subsection (e), have 
        been utilized in a manner consistent with this section. The 
        auditor shall transmit a report of the results of the audit to 
        the Secretary and to the Government Accountability Office. The 
        Secretary shall include such report in an annual report to 
        Congress, along with a plan to remedy any deficiencies cited in 
        the report. The Government Accountability Office may review 
        such audits as appropriate and shall have full access to the 
        books, records, and personnel of the Hub to ensure that 
        allowances distributed to the Hub under this subsection, and 
        awards made under subsection (e), have been utilized in a 
        manner consistent with this section.
            (6) Revocation of allowances.--The Secretary shall have 
        authority to review awards made under this subsection and to 
        revoke such awards if the Secretary determines that a Hub has 
        used the award in a manner not consistent with the requirements 
        of this section.

SEC. 172. ADVANCED ENERGY RESEARCH.

    (a) Definitions.--For purposes of this section:
            (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act 
        (as added by section 311 of this Act).
            (2) Director.--The term ``Director'' means Director of the 
        Advanced Research Projects Agency-Energy.
    (b) In General.--Not later than September 30 of 2011 and each 
calendar year thereafter through 2049, the Director shall distribute 
allowances allocated for the following vintage year under section 
782(h)(2) of the Clean Air Act (as added by section 321 of this Act). 
Such allowances shall be distributed on a competitive basis to 
institutions of higher education, companies, research foundations, 
trade and industry research collaborations, or consortia of such 
entities, or other appropriate research and development entities to 
achieve the goals of the Advanced Research Projects Agency-Energy (as 
described in section 5012(c) of the America COMPETES Act) through 
targeted acceleration of--
            (1) novel early-stage energy research with possible 
        technology applications;
            (2) development of techniques, processes, and technologies, 
        and related testing and evaluation;
            (3) development of manufacturing processes for 
        technologies; and
            (4) demonstration and coordination with nongovernmental 
        entities for commercial applications of technologies and 
        research applications.
    (c) Responsibilities.--The Director shall be responsible for 
assessing the success of programs and terminating programs carried out 
under this section that are not achieving the goals of the programs, 
consistent with 5012(e)(2) and (4) of the America COMPETES Act. The 
Director shall designate program managers whose responsibilities are 
consistent with 5012(f)(1)(B) of the America COMPETES Act. The 
Director's reporting and coordination requirements established through 
5012(g) and (h) of the America COMPETES Act shall apply to activities 
funded through this section.
    (d) Supplement Not Supplant.--Assistance provided under this 
section shall be used to supplement, and not to supplant, any other 
Federal resources available to carry out activities described in this 
section.

SEC. 173. BUILDING ASSESSMENT CENTERS.

    (a) In General.--The Secretary of Energy (in this section referred 
to as the ``Secretary'') shall provide funding to institutions of 
higher education for Building Assessment Centers to--
            (1) identify opportunities for optimizing energy efficiency 
        and environmental performance in existing buildings;
            (2) promote high-efficiency building construction 
        techniques and materials options;
            (3) promote applications of emerging concepts and 
        technologies in commercial and institutional buildings;
            (4) train engineers, architects, building scientists, and 
        building technicians in energy-efficient design and operation;
            (5) assist local community colleges, trade schools, 
        registered apprenticeship programs and other accredited 
        training programs in training building technicians;
            (6) promote research and development for the use of 
        alternative energy sources to supply heat and power, for 
        buildings, particularly energy-intensive buildings; and
            (7) coordinate with and assist State-accredited technical 
        training centers and community colleges, while ensuring 
        appropriate services to all regions of the United States.
    (b) Coordination With Regional Centers for Energy and Environmental 
Knowledge and Outreach.--A Building Assessment Center may serve as a 
Center for Energy and Environmental Knowledge and Outreach established 
pursuant to section 174.
    (c) Coordination and Duplication.--The Secretary shall coordinate 
efforts under this section with other programs of the Department of 
Energy and other Federal agencies to avoid duplication of effort.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
fiscal year 2010 and each fiscal year thereafter.

SEC. 174. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH.

    (a) Regional Centers for Energy and Environmental Knowledge and 
Outreach.--
            (1) Establishment.--The Secretary shall establish not more 
        than 10 regional Centers for Energy and Environmental Knowledge 
        and Outreach at institutions of higher education to coordinate 
        with and advise industrial research and assessment centers, 
        Building Assessment Centers, and Clean Energy Application 
        Centers located in the region of such Center for Energy and 
        Environmental Knowledge and Outreach.
            (2) Technical assistance programs.--Each Center for Energy 
        and Environmental Knowledge and Outreach shall consist of at 
        least one, new or existing, high performing, of the following:
                    (A) An industrial research and assessment center.
                    (B) A Clean Energy Application Center.
                    (C) A Building Assessment Center.
            (3) Selection criteria.--The Secretary shall select Centers 
        for Energy and Environmental Knowledge and Outreach through a 
        competitive process, based on the following:
                    (A) Identification of the highest performing 
                industrial research and assessment centers, Clean 
                Energy Application Centers, and Building Assessment 
                Centers.
                    (B) The degree to which an institution of higher 
                education maintains credibility among regional private 
                sector organizations such as trade associations, 
                engineering associations, and environmental 
                organizations.
                    (C) The degree to which an institution of higher 
                education is providing or has provided technical 
                assistance, academic leadership, and market leadership 
                in the energy arena in a manner that is consistent with 
                the areas of focus of industrial research and 
                assessment centers, Clean Energy Application Centers, 
                and Building Assessment Centers.
                    (D) The presence of an additional industrial 
                research and assessment center, Clean Energy 
                Application Center, or Building Assessment Center at 
                the institution of higher education.
            (4) Geographic diversity.--In selecting Centers for Energy 
        and Environmental Knowledge and Outreach under this subsection, 
        the Secretary shall ensure such Centers are distributed 
        geographically in a relatively uniform manner to ensure all 
        regions of the Nation are represented.
            (5) Regional leadership.--Each Center for Energy and 
        Environmental Knowledge and Outreach shall, to the extent 
        possible, provide leadership to all other industrial research 
        and assessment centers, Clean Energy Application Centers, and 
        Building Assessment Centers located in the Center's geographic 
        region, as determined by the Secretary. Such leadership shall 
        include--
                    (A) developing regional goals specific to the 
                purview of the industrial research and assessment 
                centers, Clean Energy Application Centers, and Building 
                Assessment Centers programs;
                    (B) developing regionally specific technical 
                resources; and
                    (C) outreach to interested parties in the region to 
                inform them of the information, resources, and services 
                available through the associated industrial research 
                and assessment centers, Clean Energy Application 
                Centers, and Building Assessment Centers.
            (6) Further coordination.--To increase the value and 
        capabilities of the regionally associated industrial research 
        and assessment centers, Clean Energy Application Centers, and 
        Building Assessment Centers programs, Centers for Energy and 
        Environmental Knowledge and Outreach shall--
                    (A) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute of 
                Science and Technology;
                    (B) coordinate with the relevant programs in the 
                Department of Energy, including the Building Technology 
                Program and Industrial Technologies Program;
                    (C) increase partnerships with the National 
                Laboratories of the Department of Energy to leverage 
                the expertise and technologies of the National 
                Laboratories to achieve the goals of the industrial 
                research and assessment centers, Clean Energy 
                Application Centers, and Building Assessment Centers;
                    (D) work with relevant municipal, county, and State 
                economic development entities to leverage relevant 
                financial incentives for capital investment and other 
                policy tools for the protection and growth of local 
                business and industry;
                    (E) partner with local professional and private 
                trade associations and business development interests 
                to leverage existing knowledge of local business 
                challenges and opportunities;
                    (F) work with energy utilities and other 
                administrators of publicly funded energy programs to 
                leverage existing energy efficiency and clean energy 
                programs;
                    (G) identify opportunities for reducing greenhouse 
                gas emissions; and
                    (H) promote sustainable business practices for 
                those served by the industrial research and assessment 
                centers, Clean Energy Application Centers, and Building 
                Assessment Centers.
            (7) Workforce training.--
                    (A) In general.--The Secretary shall require each 
                Center for Energy and Environmental Knowledge and 
                Outreach to establish or maintain an internship program 
                for the region of such Center, designed to encourage 
                students who perform energy assessments to continue 
                working with a particular company, building, or 
                facility to help implement the recommendations 
                contained in any such assessment provided to such 
                company, building, or facility. Each Center for Energy 
                and Environmental Knowledge and Outreach shall act as 
                internship coordinator to help match students to 
                available opportunities.
                    (B) Federal share.--The Federal share of the cost 
                of carrying out internship programs described under 
                subparagraph (A) shall be 50 percent.
                    (C) Funding.--Subject to the availability of 
                appropriations, of the funds made available to carry 
                out this subsection, the Secretary shall use to carry 
                out this paragraph not less than $5,000,000 for fiscal 
                year 2010 and each fiscal year thereafter.
            (8) Small business loans.--The Administrator of the Small 
        Business Administration shall, to the maximum practicable, 
        expedite consideration of applications from eligible small 
        business concerns for loans under the Small Business Act (15 
        U.S.C. 631 et seq.) for loans to implement recommendations of 
        any industrial research and assessment center, Clean Energy 
        Application Center, or Building Assessment Center.
            (9) Definitions.--In this subsection:
                    (A) Industrial research and assessment center.--The 
                term ``industrial research and assessment center'' 
                means a center established or maintained pursuant to 
                section 452(e) of the Energy Independence and Security 
                Act of 2007 (42 U.S.C. 17111(e)).
                    (B) Clean energy application center.--The term 
                ``Clean Energy Application Center'' means a center 
                redesignated and described section under section 375 of 
                the Energy Policy and Conservation Act (42 U.S.C. 
                6345).
                    (C) Building assessment center.--The term 
                ``Building Assessment Center'' means an institution of 
                higher education-based center established pursuant to 
                section 173.
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Energy.
            (10) Funding.--There are authorized to be appropriated to 
        the Secretary to carry out this subsection $10,000,000 for 
        fiscal year 2010 and each fiscal year thereafter. Subject to 
        the availability of appropriations, of the funds made available 
        to carry out this subsection, the Secretary shall provide to 
        each Center for Energy and Environmental Knowledge and Outreach 
        not less than $500,000 for fiscal year 2010 and each fiscal 
        year thereafter.
    (b) Integration of Other Technical Assistance Programs.--
            (1) Clean energy application centers.--Section 375 of the 
        Energy Policy and Conservation Act (42 U.S.C. 6345) is 
        amended--
                    (A) by redesignating subsection (f) as subsection 
                (g); and
                    (B) by adding after subsection (e) the following 
                new subsection:
    ``(f) Coordination With Centers for Energy and Environmental 
Knowledge and Outreach.--A Clean Energy Application Center may serve as 
a Center for Energy and Environmental Knowledge and Outreach 
established pursuant to section 174 of the American Clean Energy and 
Security Act of 2009.''.
            (2) Industrial research and assessment centers.--Section 
        452(e) of the Energy Independence and Security Act of 2007 (42 
        U.S.C. 17111(e)) is amended--
                    (A) by striking ``The Secretary'' and all that 
                follows through ``shall be--'' and inserting the 
                following:
            ``(1) In general.--The Secretary shall provide funding to 
        institution of higher education-based industrial research and 
        assessment centers, whose purposes shall be--'';
                    (B) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively (and by 
                moving the margins of such subparagraphs 2 ems to the 
                right); and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Coordination with centers for energy and 
        environmental knowledge and outreach.--An industrial research 
        and assessment center may serve as a Center for Energy and 
        Environmental Knowledge and Outreach established pursuant to 
        section 174 of the American Clean Energy and Security Act of 
        2009.''.
    (c) Additional Funding for Clean Energy Application Centers.--
Subsection (g) of section 375 of the Energy Policy and Conservation Act 
(42 U.S.C. 6345(f)), as redesignated by subsection (b)(1) of this 
section, is amended by striking ``$10,000,000 for each of fiscal years 
2008 through 2012'' and inserting ``$30,000,000 for fiscal year 2010 
and each fiscal year thereafter''.

SEC. 175. HIGH EFFICIENCY GAS TURBINE RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION.

    (a) In General.--The Secretary of Energy shall carry out a 
multiyear, multiphase program of research, development, and technology 
demonstration to improve the efficiency of gas turbines used in 
combined cycle power generation systems and to identify the 
technologies that ultimately will lead to gas turbine combined cycle 
efficiency of 65 percent.
    (b) Program Elements.--The program under this section shall--
            (1) support first-of-a-kind engineering and detailed gas 
        turbine design for utility-scale electric power generation, 
        including--
                    (A) high temperature materials, including 
                superalloys, coatings, and ceramics;
                    (B) improved heat transfer capability;
                    (C) manufacturing technology required to construct 
                complex three-dimensional geometry parts with improved 
                aerodynamic capability;
                    (D) combustion technology to produce higher firing 
                temperature while lowering nitrogen oxide and carbon 
                monoxide emissions per unit of output;
                    (E) advanced controls and systems integration;
                    (F) advanced high performance compressor 
                technology; and
                    (G) validation facilities for the testing of 
                components and subsystems;
            (2) include technology demonstration through component 
        testing, subscale testing, and full scale testing in existing 
        fleets;
            (3) include field demonstrations of the developed 
        technology elements so as to demonstrate technical and economic 
        feasibility; and
            (4) assess overall combined cycle system performance.
    (c) Program Goals.--The goals of the multiphase program established 
under subsection (a) shall be--
            (1) in phase I--
                    (A) to develop the conceptual design of advanced 
                high efficiency gas turbines that can achieve at least 
                62 percent combined cycle efficiency on a lower heating 
                value basis; and
                    (B) to develop and demonstrate the technology 
                required for advanced high efficiency gas turbines that 
                can achieve at least 62 percent combined cycle 
                efficiency on a lower heating value basis; and
            (2) in phase II, to develop the conceptual design for 
        advanced high efficiency gas turbines that can achieve at least 
        65 percent combined cycle efficiency on a lower heating value 
        basis.
    (d) Proposals.--Within 180 days after the date of enactment of this 
section, the Secretary shall solicit proposals for conducting 
activities under this section. In selecting proposals, the Secretary 
shall emphasize--
            (1) the extent to which the proposal will stimulate the 
        creation or increased retention of jobs in the United States; 
        and
            (2) the extent to which the proposal will promote and 
        enhance United States technology leadership.
    (e) Cost Sharing.--Section 988 of the Energy Policy Act of 2005 (42 
U.S.C. 16352) shall apply to an award of financial assistance made 
under this section.
    (f) Limits on Participation.--The limits on participation 
applicable under section 999E of the Energy Policy Act of 2005 (42 
U.S.C. 16375) shall apply to financial assistance awarded under this 
section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section $65,000,000 
for each of fiscal years 2011 through 2014.

             Subtitle I--Nuclear and Advanced Technologies

SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.

    (a) Definition of Conditional Commitment.--Section 1701 of the 
Energy Policy Act of 2005 (42 U.S.C. 16511), as amended by section 
130(a) of this Act, is amended by adding after paragraph (7) the 
following:
            ``(8) Conditional commitment.--The term `conditional 
        commitment' means a final term sheet negotiated between the 
        Secretary and a project sponsor or sponsors, which term sheet 
        shall be binding on both parties and become a final loan 
        guarantee agreement if all conditions precedent established in 
        the term sheet, which shall include the acquisition of all 
        necessary permits and licenses, are satisfied.''.
    (b) Specific Appropriation or Contribution.--Section 1702 of the 
Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Specific Appropriation or Contribution.--
            ``(1) In general.--No guarantee shall be made unless--
                    ``(A) an appropriation for the cost has been made;
                    ``(B) the Secretary has received from the borrower 
                a payment in full for the cost of the obligation and 
                deposited the payment into the Treasury; or
                    ``(C) a combination of appropriations or payments 
                from the borrower has been made sufficient to cover the 
                cost of the obligation.
            ``(2) Limitation.--The source of payments received from a 
        borrower under paragraph (1)(B) shall not be a loan or other 
        debt obligation that is made or guaranteed by the Federal 
        Government.''.
    (c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Availability.--Fees collected under this subsection 
        shall--
                    ``(A) be deposited by the Secretary into a special 
                fund in the Treasury to be known as the `Incentives For 
                Innovative Technologies Fund'; and
                    ``(B) remain available to the Secretary for 
                expenditure, without further appropriation or fiscal 
                year limitation, for administrative expenses incurred 
                in carrying out this title.''.
    (d) Wage Rate Requirements.--Section 1702 of the Energy Policy Act 
of 2005 (42 U.S.C. 16512) is amended by adding at the end the following 
new subsection:
    ``(k) Wage Rate Requirements.--No loan guarantee shall be made 
under this title unless the borrower has provided to the Secretary 
reasonable assurances that all laborers and mechanics employed by 
contractors and subcontractors in the performance of construction work 
financed in whole or in part by the guaranteed loan will be paid wages 
at rates not less than those prevailing on projects of a character 
similar to the contract work in the civil subdivision of the State in 
which the contract work is to be performed as determined by the 
Secretary of Labor in accordance with subchapter IV of chapter 31 of 
part A of subtitle II of title 40, United States Code. With respect to 
the labor standards specified in this subsection, the Secretary of 
Labor shall have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 
and section 3145 of title 40, United States Code.''.
    (e) Subrogation.--Section 1702(g)(2) of the Energy Policy Act of 
2005 (42 U.S.C. 16512(g)(2)) is amended by striking subparagraphs (B) 
and (C) and inserting the following:
                    ``(B) Superiority of rights.--Except as provided in 
                subparagraph (C), the rights of the Secretary, with 
                respect to any property acquired pursuant to a 
                guarantee or related agreements, shall be superior to 
                the rights of any other person with respect to the 
                property.
                    ``(C) Terms and conditions.--A guarantee agreement 
                shall include such detailed terms and conditions as the 
                Secretary determines appropriate to--
                            ``(i) protect the financial interests of 
                        the United States in the case of default;
                            ``(ii) have available all the patents and 
                        technology necessary for any person selected, 
                        including the Secretary, to complete and 
                        operate the project;
                            ``(iii) provide for sharing the proceeds 
                        received from the sale of project assets with 
                        other creditors or control the disposition of 
                        project assets if necessary to protect the 
                        financial interests of the United States in the 
                        case of default; and
                            ``(iv) provide such lien priority in 
                        project assets as necessary to protect the 
                        financial interests of the United States in the 
                        case of a default.''.

SEC. 182. PURPOSE.

    The purpose of sections 183 through 189 of this subtitle is to 
promote the domestic development and deployment of clean energy 
technologies required for the 21st century through the establishment of 
a self-sustaining Clean Energy Deployment Administration that will 
provide for an attractive investment environment through partnership 
with and support of the private capital market in order to promote 
access to affordable financing for accelerated and widespread 
deployment of--
            (1) clean energy technologies;
            (2) advanced or enabling energy infrastructure 
        technologies;
            (3) energy efficiency technologies in residential, 
        commercial, and industrial applications, including end-use 
        efficiency in buildings; and
            (4) manufacturing technologies for any of the technologies 
        or applications described in this section.

SEC. 183. DEFINITIONS.

    In this subtitle:
            (1) Administration.--The term ``Administration'' means the 
        Clean Energy Deployment Administration established by section 
        186.
            (2) Advisory council.--The term ``Advisory Council'' means 
        the Energy Technology Advisory Council of the Administration.
            (3) Breakthrough technology.--The term ``breakthrough 
        technology'' means a clean energy technology that--
                    (A) presents a significant opportunity to advance 
                the goals developed under section 185, as assessed 
                under the methodology established by the Advisory 
                Council; but
                    (B) has generally not been considered a 
                commercially ready technology as a result of high 
                perceived technology risk or other similar factors.
            (4) Clean energy technology.--The term ``clean energy 
        technology'' means a technology related to the production, use, 
        transmission, storage, control, or conservation of energy--
                    (A) that will contribute to a stabilization of 
                atmospheric greenhouse gas concentrations thorough 
                reduction, avoidance, or sequestration of energy-
                related emissions and--
                            (i) reduce the need for additional energy 
                        supplies by using existing energy supplies with 
                        greater efficiency or by transmitting, 
                        distributing, or transporting energy with 
                        greater effectiveness through the 
                        infrastructure of the United States; or
                            (ii) diversify the sources of energy supply 
                        of the United States to strengthen energy 
                        security and to increase supplies with a 
                        favorable balance of environmental effects if 
                        the entire technology system is considered; and
                    (B) for which, as determined by the Administrator, 
                insufficient commercial lending is available at 
                affordable rates to allow for widespread deployment.
            (5) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
            (6) Direct loan.--The term ``direct loan'' has the meaning 
        given the term in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (7) Fund.--The term ``Fund'' means the Clean Energy 
        Investment Fund established by section 184(a).
            (8) Green bonds.--The term ``Green Bonds'' means bonds 
        issued pursuant to section 184.
            (8) Loan guarantee.--The term ``loan guarantee'' has the 
        meaning given the term in section 502 of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a).
            (9) National laboratory.--The term ``National Laboratory'' 
        has the meaning given the term in section 2 of the Energy 
        Policy Act of 2005 (42 U.S.C. 15801).
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (11) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (12) Technology risk.--The term ``technology risk'' means 
        the risks during construction or operation associated with the 
        design, development, and deployment of clean energy 
        technologies (including the cost, schedule, performance, 
        reliability and maintenance, and accounting for the perceived 
        risk), from the perspective of commercial lenders, that may be 
        increased as a result of the absence of adequate historical 
        construction, operating, or performance data from commercial 
        applications of the technology.

SEC. 184. CLEAN ENERGY INVESTMENT FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a revolving fund, to be known as the ``Clean Energy 
Investment Fund'', consisting of--
            (1) such amounts as are deposited in the Fund under this 
        subtitle; and
            (2) such sums as may be appropriated to supplement the 
        Fund.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as are necessary to carry out this 
subtitle.
    (c) Expenditures From Fund.--
            (1) In general.--Amounts in the Fund shall be available to 
        the Administrator of the Administration for obligation without 
        fiscal year limitation, to remain available until expended.
            (2) Administrative expenses.--
                    (A) Fees.--Fees collected for administrative 
                expenses shall be available without limitation to cover 
                applicable expenses.
                    (B) Fund.--To the extent that administrative 
                expenses are not reimbursed through fees, an amount not 
                to exceed 1.5 percent of the amounts in the Fund as of 
                the beginning of each fiscal year shall be available to 
                pay the administrative expenses for the fiscal year 
                necessary to carry out this subtitle.
    (d) Transfers of Amounts.--
            (1) In general.--The amounts required to be transferred to 
        the Fund under this section shall be transferred at least 
        monthly from the general fund of the Treasury to the Fund on 
        the basis of estimates made by the Secretary of the Treasury.
            (2) Adjustments.--Proper adjustment shall be made in 
        amounts subsequently transferred to the extent prior estimates 
        were in excess of or less than the amounts required to be 
        transferred.
            (3) Cash flows.--Cash flows associated with costs of the 
        Fund described in section 502(5)(B) of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a(5)(B)) shall be transferred 
        to appropriate credit accounts.
    (e) Green Bonds.--
            (1) Initial capitalization.--The Secretary of the Treasury 
        shall issue Green Bonds in the amount of $7,500,000,000 on the 
        credit of the United States to acquire capital stock of the 
        Administration. Stock certificates evidencing ownership in the 
        Administration shall be issued by the Administration to the 
        Secretary of the Treasury, to the extent of payments made for 
        the capital stock of the Administration.
            (2) Denominations and maturity.--Green Bonds shall be in 
        such forms and denominations, and shall mature within such 
        periods, as determined by the Secretary of the Treasury.
            (3) Interest.--Green Bonds shall bear interest at a rate 
        not less than the current average yield on outstanding market 
        obligations of the United States of comparable maturity during 
        the month preceding the issuance of the obligation as 
        determined by the Secretary of the Treasury.
            (4) Lawful investments.--Green Bonds shall be lawful 
        investments, and may be accepted as security for all fiduciary, 
        trust, and public funds, the investment or deposit of which 
        shall be under the authority or control of the United States or 
        any officer or officers thereof.

SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

    (a) Goals.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, after consultation with the Advisory Council, 
shall develop and publish for review and comment in the Federal 
Register recommended near-, medium-, and long-term goals (including 
numerical performance targets at appropriate intervals to measure 
progress toward those goals) for the deployment of clean energy 
technologies through the credit support programs established by section 
187 to promote--
            (1) sufficient electric generating capacity using clean 
        energy technologies to meet the energy needs of the United 
        States;
            (2) clean energy technologies in vehicles and fuels that 
        will substantially reduce the reliance of the United States on 
        foreign sources of energy and insulate consumers from the 
        volatility of world energy markets;
            (3) a domestic commercialization and manufacturing capacity 
        that will establish the United States as a world leader in 
        clean energy technologies across multiple sectors;
            (4) installation of sufficient infrastructure to allow for 
        the cost-effective deployment of clean energy technologies 
        appropriate to each region of the United States;
            (5) the transformation of the building stock of the United 
        States to zero net energy consumption;
            (6) the recovery, use, and prevention of waste energy;
            (7) domestic manufacturing of clean energy technologies on 
        a scale that is sufficient to achieve price parity with 
        conventional energy sources;
            (8) domestic production of commodities and materials (such 
        as steel, chemicals, polymers, and cement) using clean energy 
        technologies so that the United States will become a world 
        leader in environmentally sustainable production of the 
        commodities and materials;
            (9) a robust, efficient, and interactive electricity 
        transmission grid that will allow for the incorporation of 
        clean energy technologies, distributed generation, and demand-
        response in each regional electric grid;
            (10) sufficient availability of financial products to allow 
        owners and users of residential, retail, commercial, and 
        industrial buildings to make energy efficiency and distributed 
        generation technology investments with reasonable payback 
        periods;
            (11) sufficient availability of financial services and 
        support to small businesses developing and deploying clean 
        energy technologies through partnerships with private entities 
        that have relevant credit expertise; and
            (12) such other goals as the Secretary, in consultation 
        with the Advisory Council, determines to be consistent with the 
        purpose stated in section 182.
    (b) Revisions.--The Secretary shall revise the goals established 
under subsection (a), from time to time as appropriate, to account for 
advances in technology and changes in energy policy.

SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

    (a) Establishment.--
            (1) Establishment of corporation.--There is established a 
        corporation to be known as the Clean Energy Deployment 
        Administration that shall be wholly owned by the United States.
            (2) Independent corporation.--The Administration shall be 
        an independent corporation. Neither the Administration nor any 
        of its functions, powers, or duties shall be transferred to or 
        consolidated with any other department, agency, or corporation 
        of the Government unless the Congress provides otherwise.
            (3) Charter.--The Administration shall be chartered for 20 
        years from the date of enactment of this section.
            (4) Status.--
                    (A) Inspector general.--Section 12 of the Inspector 
                General Act of 1978 (5 U.S.C. App.) is amended--
                            (i) in paragraph (1), by inserting ``the 
                        Administrator of the Clean Energy Deployment 
                        Administration;'' after ``Export-Import 
                        Bank;''; and
                            (ii) in paragraph (2), by inserting ``the 
                        Clean Energy Deployment Administration,'' after 
                        ``Export-Import Bank,''.
            (3) Offices.--
                    (A) Principal office.--The Administration shall--
                            (i) maintain the principal office of the 
                        Administration in the national capital region; 
                        and
                            (ii) for purposes of venue in civil 
                        actions, be considered to be a resident of the 
                        District of Columbia.
                    (B) Other offices.--The Administration may 
                establish other offices in such other places as the 
                Administration considers necessary or appropriate for 
                the conduct of the business of the Administration.
    (b) Administrator.--
            (1) In general.--The Administrator of the Administration 
        shall be--
                    (A) appointed by the President, with the advice and 
                consent of the Senate, for a 5-year term; and
                    (B) compensated at the prevailing rate for 
                compensation for similar positions in industry.
            (2) Duties.--The Administrator of the Administration 
        shall--
                    (A) serve as the Chief Executive Officer of the 
                Administration and Chairman of the Board;
                    (B) ensure that--
                            (i) the Administration operates in a safe 
                        and sound manner, including maintenance of 
                        adequate capital and internal controls 
                        (consistent with section 404 of the Sarbanes-
                        Oxley Act of 2002 (15 U.S.C. 7262));
                            (ii) the operations and activities of the 
                        Administration foster liquid, efficient, 
                        competitive, and resilient energy and energy 
                        efficiency finance markets;
                            (iii) the Administration carries out the 
                        purpose stated in section 182 only through 
                        activities that are authorized under and 
                        consistent with sections 182 through 189; and
                            (iv) the activities of the Administration 
                        and the manner in which the Administration is 
                        operated are consistent with the public 
                        interest;
                    (C) develop policies and procedures for the 
                Administration that will--
                            (i) promote a self-sustaining portfolio of 
                        investments that will maximize the value of 
                        investments to effectively promote clean energy 
                        technologies;
                            (ii) promote transparency and openness in 
                        Administration operations;
                            (iii) afford the Administration with 
                        sufficient flexibility to meet the purpose 
                        stated in section 182; and
                            (iv) provide for the efficient processing 
                        of applications; and
                    (D) with the concurrence of the Board, set expected 
                loss reserves for the support provided by the 
                Administration consistent with section 187(c).
    (c) Board of Directors.--
            (1) In general.--The Board of Directors of the 
        Administration shall consist of--
                    (A) the Secretary or the designee of the Secretary, 
                who shall serve as an ex-officio member of the Board of 
                Directors;
                    (B) the Secretary of the Treasury or the designee 
                of the Secretary, who shall serve as an ex-officio 
                member of the Board of Directors;
                    (C) the Secretary of the Interior or the designee 
                of the Secretary, who shall serve as an ex-officio 
                member of the Board of Directors;
                    (D) the Secretary of Agriculture or the designee of 
                the Secretary, who shall serve as an ex officio member 
                of the Board of Directors;
                    (E) the Administrator of the Administration, who 
                shall serve as the Chairman of the Board of Directors; 
                and
                    (F) 4 additional members who shall--
                            (i) be appointed by the President, with the 
                        advice and consent of the Senate, for staggered 
                        5-year terms; and
                            (ii) have experience in banking, financial 
                        services, technology assessment, energy 
                        regulation, or risk management, including 
                        individuals with substantial experience in the 
                        development of energy projects, the electricity 
                        generation sector, the transportation sector, 
                        the manufacturing sector, and the energy 
                        efficiency sector.
            (2) Duties.--The Board of Directors shall--
                    (A) oversee the operations of the Administration 
                and ensure industry best practices are followed in all 
                financial transactions involving the Administration;
                    (B) consult with the Administrator of the 
                Administration on the general policies and procedures 
                of the Administration to ensure the interests of the 
                taxpayers are protected;
                    (C) ensure the portfolio of investments are 
                consistent with purpose stated in section 182 and with 
                the long-term financial stability of the 
                Administration;
                    (D) ensure that the operations and activities of 
                the Administration are consistent with the development 
                of a robust private sector that can provide commercial 
                loans or financing products; and
                    (E) not serve on a full-time basis, except that the 
                Board of Directors shall meet at least quarterly to 
                review, as appropriate, applications for credit support 
                and set policies and procedures as necessary.
            (3) Removal.--An appointed member of the Board of Directors 
        may be removed from office by the President for good cause.
            (4) Vacancies.--An appointed seat on the Board of Directors 
        that becomes vacant shall be filled by appointment by the 
        President, but only for the unexpired portion of the term of 
        the vacating member.
            (5) Compensation of members.--An appointed member of the 
        Board of Directors shall be compensated at the prevailing rate 
        for compensation for similar positions in industry.
    (d) Energy Technology Advisory Council.--
            (1) In general.--The Administration shall have an Energy 
        Technology Advisory Council consisting of 8 members selected by 
        the Board of Directors of the Administration.
            (2) Qualifications.--The members of the Advisory Council 
        shall--
                    (A) have clean energy project development, clean 
                energy finance, commercial, and/or relevant scientific 
                expertise; and
                    (B) include representatives of--
                            (i) the academic community;
                            (ii) the private research community;
                            (iii) National Laboratories;
                            (iv) the technology or project development 
                        community; and
                            (v) the commercial energy financing and 
                        operations sector.
            (3) Duties.--The Advisory Council shall--
                    (A) develop and publish for comment in the Federal 
                Register a methodology for assessment of clean energy 
                technologies that will allow the Administration to 
                evaluate projects based on the progress likely to be 
                achieved per-dollar invested in maximizing the 
                attributes of the definition of clean energy 
                technology, taking into account the extent to which 
                support for a clean energy technology is likely to 
                accrue subsequent benefits that are attributable to a 
                commercial scale deployment taking place earlier than 
                that which otherwise would have occurred without the 
                support; and
                    (B) advise on the technological approaches that 
                should be supported by the Administration to meet the 
                technology deployment goals established by the 
                Secretary pursuant to section 185.
            (4) Term.--
                    (A) In general.--Members of the Advisory Council 
                shall have 5-year staggered terms, as determined by the 
                Administrator of the Administration.
                    (B) Reappointment.--A member of the Advisory 
                Council may be reappointed.
            (5) Compensation.--A member of the Advisory Council, who is 
        not otherwise compensated as a Federal employee, shall be 
        compensated at a rate equal to the daily equivalent of the 
        annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which the 
        member is engaged in the performance of the duties of the 
        Advisory Council.
    (e) Staff.--
            (1) In general.--The Administrator of the Administration, 
        in consultation with the Board of Directors, may--
                    (A) appoint and terminate such officers, attorneys, 
                employees, and agents as are necessary to carry out 
                this subtitle; and
                    (B) vest those personnel with such powers and 
                duties as the Administrator of the Administration may 
                determine.
    (f) Conflicts of Interest.--No director, officer, attorney, agent, 
or employee of the Administration shall in any manner, directly or 
indirectly, participate in the deliberation upon, or the determination 
of, any question affecting such individual's personal interests, or the 
interests of any corporation, partnership, or association in which such 
individual is directly or indirectly personally interested.
    (g) Sunset.--
            (1) Expiration of charter.--The Administration shall 
        continue to exercise its functions until all obligations and 
        commitments of the Administration are discharged, even after 
        its charter has expired.
            (2) Prior obligations.--No provisions of this subsection 
        shall be construed as preventing the Administration from--
                    (A) undertaking obligations prior to the date of 
                the expiration of its charter which mature subsequent 
                to such date;
                    (B) assuming, prior to the date of the expiration 
                of its charter, liability as guarantor, endorser, or 
                acceptor of obligations which mature subsequent to such 
                date; or
                    (C) continuing as a corporation and exercising any 
                of its functions subsequent to the date of the 
                expiration of its charter for purposes of orderly 
                liquidation, including the administration of its assets 
                and the collection of any obligations held by the 
                Administration.

SEC. 187. DIRECT SUPPORT.

    (a) In General.--The Administration may issue direct loans, letters 
of credit, and loan guarantees to deploy clean energy technologies if 
the Administrator of the Administration has determined that deployment 
of the technologies would benefit or be accelerated by the support.
    (b) Eligibility Criteria.--In carrying out this section and 
awarding credit support to projects, the Administrator of the 
Administration shall account for--
            (1) how the technology rates based on an evaluation 
        methodology established by the Advisory Council;
            (2) how the project fits with the goals established under 
        section 185; and
            (3) the potential for the applicant to successfully 
        complete the project.
    (c) Risk.--
            (1) Expected loan loss reserve.--The Administrator of the 
        Administration shall establish an expected loan loss reserve to 
        account for estimated losses attributable to activities under 
        this section that is consistent with the purposes of--
                    (A) developing breakthrough technologies to the 
                point at which technology risk is largely mitigated;
                    (B) achieving widespread deployment and advancing 
                the commercial viability of clean energy technologies; 
                and
                    (C) advancing the goals established under section 
                185.
            (2) Initial expected loan loss reserve.--Until such time as 
        the Administrator of the Administration determines sufficient 
        data exist to establish an expected loan loss reserve that is 
        appropriate, the Administrator of the Administration shall 
        consider establishing an initial rate of 10 percent for the 
        portfolio of investments under this subtitle.
            (3) Portfolio investment approach.--The Administration 
        shall--
                    (A) use a portfolio investment approach to mitigate 
                risk and diversify investments across technologies and 
                ensure that no particular technology is provided more 
                than 30 percent of the financial support available;
                    (B) to the maximum extent practicable and 
                consistent with long-term self-sufficiency, weigh the 
                portfolio of investments in projects to advance the 
                goals established under section 185;
                    (C) consistent with the expected loan loss reserve 
                established under this subsection, the purpose stated 
                in section 182, and section 186(b)(2)(B), provide the 
                maximum practicable percentage of support to promote 
                breakthrough technologies; and
                    (D) give the highest priority to investments that 
                promote technologies that will achieve the maximum 
                greenhouse gas emission reductions within a reasonable 
                period of time per dollar invested and the earliest 
                reductions in greenhouse gas emissions.
            (4) Loss rate review.--
                    (A) In general.--The Board of Directors shall 
                review on an annual basis the loss rates of the 
                portfolio to determine the adequacy of the reserves.
                    (B) Report.--Not later than 90 days after the date 
                of the initiation of the review, the Administrator of 
                the Administration shall submit to the Committee on 
                Energy and Natural Resources and the Committee on 
                Finance of the Senate, and the Committee on Energy and 
                Commerce and the Committee on Ways and Means of the 
                House of Representatives a report describing the 
                results of the review and any recommended policy 
                changes.
            (5) Federal cost share.--Direct loans, letters of credit 
        and loan guarantees by the Administration shall not exceed an 
        amount equal to 80 percent of the project cost of the facility 
        that is the subject of the loan, letter of credit or loan 
        guarantee, as estimated at the time at which the loan, letter 
        of credit or loan guarantee is issued.
    (d) Application Review.--
            (1) In general.--To the maximum extent practicable and 
        consistent with sound business practices, the Administration 
        shall seek to consolidate reviews of applications for credit 
        support under this subtitle such that final decisions on 
        applications can generally be issued not later than 180 days 
        after the date of submission of a completed application.
            (2) Environmental review.--In carrying out this subtitle, 
        the Administration shall, to the maximum extent practicable--
                    (A) avoid duplicating efforts that have already 
                been undertaken by other agencies (including State 
                agencies acting under Federal programs); and
                    (B) with the advice of the Council on Environmental 
                Quality and any other applicable agencies, use the 
                administrative records of similar reviews conducted 
                throughout the executive branch to develop the most 
                expeditious review process practicable.
    (e) Wage Rate Requirements.--
            (1) In general.--No credit support shall be issued under 
        this section unless the borrower has provided to the 
        Administrator of the Administration reasonable assurances that 
        all laborers and mechanics employed by contractors and 
        subcontractors in the performance of construction work financed 
        in whole or in part by the Administration will be paid wages at 
        rates not less than those prevailing on projects of a character 
        similar to the contract work in the civil subdivision of the 
        State in which the contract work is to be performed as 
        determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of part A of subtitle II of title 
        40, United States Code.
            (2) Labor standards.--With respect to the labor standards 
        specified in this subsection, the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.
    (f) Limitations.--(1) The Administration shall not provide direct 
support as defined under this section or indirect support as defined 
under section 188 to an individual clean energy technology project that 
obtained a loan guarantee under title XVII of the Energy Policy Act of 
2005.
    (2) No direct or indirect support provided by the Administration 
may be used to pay any part of the cost of an obligation or a loan 
guarantee under title XVII of the Energy Policy Act of 2005.

SEC. 188. INDIRECT SUPPORT.

    (a) In General.--For the purpose of enhancing the availability of 
private financing for clean energy technology deployment, the 
Administration may--
            (1) provide credit support to portfolios of taxable debt 
        obligations originated by state, local, and private sector 
        entities that enable owners and users of buildings and 
        industrial facilities to--
                    (A) significantly increase the energy efficiency of 
                such buildings or facilities; or
                    (B) install systems that individually generate 
                electricity from renewable energy resources and have a 
                capacity of no more than 2 megawatts;
            (2) facilitate financing transactions in tax equity markets 
        and long-term purchasing of clean energy by state, local, and 
        non-governmental not-for-profit entities, to the degree and 
        extent that the Administration determines such financing 
        activity is appropriate and consistent with carrying out the 
        purposes described in Section 182 of this Act; and
            (3) provide credit support to portfolios of taxable debt 
        obligations originated by state, local, and private sector 
        entities that enable the deployment of energy storage 
        applications for electric drive vehicles, stationary 
        applications, and electricity transmission and distribution.
    (b) Definitions.--For purposes of the section:
            (1) Credit support.--The term ``credit support'' means--
                    (A) direct loans, letters of credit, loan 
                guarantees, and insurance products; and
                    (B) the purchase or commitment to purchase, or the 
                sale or commitment to sell, debt instruments (including 
                subordinated securities).
            (2) Renewable energy resource.--The term ``renewable energy 
        resource'' shall have the meaning given that term in section 
        610 of the Public Utility Regulatory Policies Act of 1978 (as 
        added by section 101 of this Act).
    (c) Transparency.--The Administration shall seek to foster through 
its credit support activities--
            (1) the development and consistent application of standard 
        contractual terms, transparent underwriting standards and 
        consistent measurement and verification protocols, as 
        applicable; and
            (2) the creation of performance data that promotes 
        effective underwriting and risk management to support lending 
        markets and stimulate the development of private investment 
        markets.
    (d) Exempt Securities.--All securities insured or guaranteed by the 
Administration shall, to the same extent as securities that are direct 
obligations of or obligations guaranteed as to the principal or 
interest by the United States, be considered to be exempt securities 
within the meaning of the laws administered by the Securities and 
Exchange Commission.

SEC. 189. FEDERAL CREDIT AUTHORITY.

    (a) Payments of Liabilities.--
            (1) In general.--Any payment made to discharge liabilities 
        arising from agreements under this subtitle shall be paid 
        exclusively out of the Fund or the associated credit account, 
        as appropriate.
            (2) Security.--Subject to paragraph (1), the full faith and 
        credit of the United States is pledged to the payment of all 
        obligations entered into by the Administration pursuant to this 
        subtitle.
    (b) Fees.--
            (1) In general.--Consistent with achieving the purpose 
        stated in section 182, the Administrator of the Administration 
        shall charge fees or collect compensation generally in 
        accordance with commercial rates.
            (2) Availability of fees.--All fees collected by the 
        Administration may be retained by the Administration and placed 
        in the Fund and may remain available to the Administration, 
        without further appropriation or fiscal year limitation, for 
        use in carrying out the purpose stated in section 182.
            (3) Breakthrough technologies.--The Administration shall 
        charge the minimum amount in fees or compensation practicable 
        for breakthrough technologies, consistent with the long-term 
        viability of the Administration, unless the Administration 
        first determines that a higher charge will not impede the 
        development of the technology.
            (4) Alternative fee arrangements.--The Administration may 
        use such alternative arrangements (such as profit 
        participation, contingent fees, and other valuable contingent 
        interests) as the Administration considers appropriate to 
        compensate the Administration for the expenses of the 
        Administration and the risk inherent in the support of the 
        Administration.
    (c) Cost Transfer Authority.--Amounts collected by the 
Administration for the cost of a loan or loan guarantee shall be 
transferred by the Administration to the respective credit accounts.

SEC. 190. GENERAL PROVISIONS.

    (a) Immunity From Impairment, Limitation, or Restriction.--
            (1) In general.--All rights and remedies of the 
        Administration (including any rights and remedies of the 
        Administration on, under, or with respect to any mortgage or 
        any obligation secured by a mortgage) shall be immune from 
        impairment, limitation, or restriction by or under--
                    (A) any law (other than a law enacted by Congress 
                expressly in limitation of this paragraph) that becomes 
                effective after the acquisition by the Administration 
                of the subject or property on, under, or with respect 
                to which the right or remedy arises or exists or would 
                so arise or exist in the absence of the law; or
                    (B) any administrative or other action that becomes 
                effective after the acquisition.
            (2) State law.--The Administrator of the Administration may 
        conduct the business of the Administration without regard to 
        any qualification or law of any State relating to 
        incorporation.
    (b) Use of Other Agencies.--With the consent of a department, 
establishment, or instrumentality (including any field office), the 
Administration may--
            (1) use and act through any department, establishment, or 
        instrumentality; and
            (2) use, and pay compensation for, information, services, 
        facilities, and personnel of the department, establishment, or 
        instrumentality.
    (c) Financial Matters.--
            (1) Investments.--Funds of the Administration may be 
        invested in such investments as the Board of Directors may 
        prescribe. Earnings from such funds, other than fees collected 
        under section 189, may be spent by the Administration only to 
        such extent or in such amounts as are provided in advance by 
        appropriation Acts.
            (2) Fiscal agents.--Any Federal Reserve bank or any bank as 
        to which at the time of the designation of the bank by the 
        Administrator of the Administration there is outstanding a 
        designation by the Secretary of the Treasury as a general or 
        other depository of public money, may be designated by the 
        Administrator of the Administration as a depositary or 
        custodian or as a fiscal or other agent of the Administration.
    (d) Periodic Reports.--Not later than 1 year after commencement of 
operation of the Administration and at least biannually thereafter, the 
Administrator of the Administration shall submit to the Committee on 
Energy and Natural Resources and the Committee on Finance of the Senate 
and the Committee on Energy and Commerce and the Committee on Ways and 
Means of the House of Representatives a report that includes a 
description of--
            (1) the technologies supported by activities of the 
        Administration and how the activities advance the purpose 
        stated in section 182; and
            (2) the performance of the Administration on meeting the 
        goals established under section 185.
    (g) Audits by the Comptroller General.--
            (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of the Administration 
        shall be subject to audit by the Comptroller General of the 
        United States under such rules and regulations as may be 
        prescribed by the Comptroller General.
            (2) Access.--The representatives of the Government 
        Accountability Office shall--
                    (A) have access to the personnel and to all books, 
                accounts, documents, records (including electronic 
                records), reports, files, and all other papers, 
                automated data, things, or property belonging to, under 
                the control of, or in use by the Administration, or any 
                agent, representative, attorney, advisor, or consultant 
                retained by the Administration, and necessary to 
                facilitate the audit;
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians;
                    (C) be authorized to obtain and duplicate any such 
                books, accounts, documents, records, working papers, 
                automated data and files, or other information relevant 
                to the audit without cost to the Comptroller General; 
                and
                    (D) have the right of access of the Comptroller 
                General to such information pursuant to section 716(c) 
                of title 31, United States Code.
            (3) Assistance and cost.--
                    (A) In general.--For the purpose of conducting an 
                audit under this subsection, the Comptroller General 
                may, in the discretion of the Comptroller General, 
                employ by contract, without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5), professional 
                services of firms and organizations of certified public 
                accountants for temporary periods or for special 
                purposes.
                    (B) Reimbursement.--
                            (i) In general.--On the request of the 
                        Comptroller General, the Administration shall 
                        reimburse the Government Accountability Office 
                        for the full cost of any audit conducted by the 
                        Comptroller General under this subsection.
                            (ii) Crediting.--Such reimbursements 
                        shall--
                                    (I) be credited to the 
                                appropriation account entitled 
                                ``Salaries and Expenses, Government 
                                Accountability Office'' at the time at 
                                which the payment is received; and
                                    (II) remain available until 
                                expended.
    (h) Annual Independent Audits.--
            (1) In general.--The Administrator of the Administration 
        shall--
                    (A) have an annual independent audit made of the 
                financial statements of the Administration by an 
                independent public accountant in accordance with 
                generally accepted auditing standards; and
                    (B) submit to the Secretary and to the Committee on 
                Energy and Natural Resources and the Committee on 
                Finance of the Senate and the Committee on Energy and 
                Commerce and the Committee on Ways and Means of the 
                House the results of the audit.
            (2) Content.--In conducting an audit under this subsection, 
        the independent public accountant shall determine and report on 
        whether the financial statements of the Administration--
                    (A) are presented fairly in accordance with 
                generally accepted accounting principles; and
                    (B) comply with any disclosure requirements imposed 
                under this subtitle.
    (i) Financial Reports.--
            (1) In general.--The Administrator of the Administration 
        shall submit to the Secretary and to the Committee on Energy 
        and Natural Resources and the Committee on Finance of the 
        Senate and the Committee on Energy and Commerce and the 
        Committee on Ways and Means of the House annual and quarterly 
        reports of the financial condition and operations of the 
        Administration, which shall be in such form, contain such 
        information, and be submitted on such dates as the Secretary 
        shall require.
            (2) Contents of annual reports.--Each annual report shall 
        include--
                    (A) financial statements prepared in accordance 
                with generally accepted accounting principles;
                    (B) any supplemental information or alternative 
                presentation that the Secretary may require; and
                    (C) an assessment (as of the end of the most recent 
                fiscal year of the Administration), signed by the chief 
                executive officer and chief accounting or financial 
                officer of the Administration, of--
                            (i) the effectiveness of the internal 
                        control structure and procedures of the 
                        Administration; and
                            (ii) the compliance of the Administration 
                        with applicable safety and soundness laws.
            (3) Special reports.--The Secretary may require the 
        Administrator of the Administration to submit other reports on 
        the condition (including financial condition), management, 
        activities, or operations of the Administration, as the 
        Secretary considers appropriate.
            (4) Accuracy.--Each report of financial condition shall 
        contain a declaration by the Administrator of the 
        Administration or any other officer designated by the Board of 
        Directors of the Administration to make the declaration, that 
        the report is true and correct to the best of the knowledge and 
        belief of the officer.
            (5) Availability of reports.--Reports required under this 
        section shall be published and made publicly available as soon 
        as is practicable after receipt by the Secretary.
    (j) Spending Safeguards and Reporting.--
            (1) In general.--The Administrator--
                    (A) shall require any entity receiving financing 
                support from the Administration to report quarterly, in 
                a format specified by the Administrator, on such 
                entity's use of such support and its progress 
                fulfilling the objectives for which such support was 
                granted, and the Administrator shall make these reports 
                available to the public;
                    (B) may establish additional reporting and 
                information requirements for any recipient of financing 
                support from the Administration;
                    (C) shall establish appropriate mechanisms to 
                ensure appropriate use and compliance with all terms of 
                any financing support from the Administration;
                    (D) shall create and maintain a fully searchable 
                database, accessible on the Internet (or successor 
                protocol) at no cost to the public, that contains at 
                least--
                            (i) a list of each entity that has applied 
                        for financing support;
                            (ii) a description of each application;
                            (iii) the status of each such application;
                            (iv) the name of each entity receiving 
                        financing support;
                            (v) the purpose for which such entity is 
                        receiving such financing support;
                            (vi) each quarterly report submitted by the 
                        entity pursuant to this section; and
                            (vii) such other information sufficient to 
                        allow the public to understand and monitor the 
                        financial support provided by the 
                        Administration;
                    (E) shall make all financing transactions available 
                for public inspection, including formal annual reviews 
                by both a private auditor and the Comptroller General; 
                and
                    (F) shall at all times be available to receive 
                public comment in writing on the activities of the 
                Administration.
            (2) Protection of confidential business information.--To 
        the extent necessary and appropriate, the Administrator may 
        redact any information regarding applicants and borrowers to 
        protect confidential business information.

SEC. 191. CONFORMING AMENDMENTS.

    (a) Tax Exempt Status.--Subsection (l) of section 501 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
            ``(4) The Clean Energy Deployment Administration 
        established under section 186 of the American Clean Energy and 
        Security Act of 2009.''.
    (b) Wholly Owned Government Corporation.--Paragraph (3) of section 
9101 of title 31, United States Code, is amended by adding at the end 
the following:
                    ``(S) the Clean Energy Deployment 
                Administration.''.

                       Subtitle J--Miscellaneous

SEC. 195. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
              FACILITIES.

    (a) In General.--The Secretary of the Interior, the Secretary of 
Energy, and the Secretary of the Army shall jointly update the study of 
the potential for increasing electric power production capability at 
federally owned or operated water regulation, storage, and conveyance 
facilities required in section 1834 of the Energy Policy Act of 2005.
    (b) Content.--The update under this section shall include 
identification and description in detail of each facility that is 
capable, with or without modification, of producing additional 
hydroelectric power, including estimation of the existing potential for 
the facility to generate hydroelectric power.
    (c) Report.--The Secretaries shall submit to the Committees on 
Energy and Commerce, Natural Resources, and Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate a report on the findings, 
conclusions, and recommendations of the update of the study under this 
section by not later than 12 months after the date of enactment of this 
Act. The report shall include each of the following:
            (1) The identifications, descriptions, and estimations 
        referred to in subsection (b).
            (2) A description of activities currently conducted or 
        considered, or that could be considered, to produce additional 
        hydroelectric power from each identified facility.
            (3) A summary of prior actions taken by the Secretaries to 
        produce additional hydroelectric power from each identified 
        facility.
            (4) The costs to install, upgrade, or modify equipment or 
        take other actions to produce additional hydroelectric power 
        from each identified facility, and the level of Federal power 
        customer involvement in the determination of such costs.
            (5) The benefits that would be achieved by such 
        installation, upgrade, modification, or other action, including 
        quantified estimates of any additional energy or capacity from 
        each facility identified under subsection (b).
            (6) A description of actions that are planned, underway, or 
        might reasonably be considered to increase hydroelectric power 
        production by replacing turbine runners, by performing 
        generator upgrades or rewinds, or by construction of pumped 
        storage facilities.
            (7) The impact of increased hydroelectric power production 
        on irrigation, water supply, fish, wildlife, Indian tribes, 
        river health, water quality, navigation, recreation, fishing, 
        and flood control.
            (8) Any additional recommendations to increase 
        hydroelectric power production from, and reduce costs and 
        improve efficiency at, federally owned or operated water 
        regulation, storage, and conveyance facilities.

SEC. 196. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT PROGRAM.

    (a) In General.--The Secretary of Energy is authorized to provide 
grants to organizations to conduct business competitions that provide 
incentives, training, and mentorship to entrepreneurs, including 
minority-owned and woman-owned, and early stage start-up companies 
throughout the United States to meet high priority economic, 
environmental, and energy security goals in areas to include energy 
efficiency, renewable energy, air quality, water quality and 
conservation, transportation, smart grid, green building, and waste 
management. Such competitions shall have the purpose of accelerating 
the development and deployment of clean technology businesses and green 
jobs; stimulating green economic development; providing business 
training and mentoring to early stage clean technology companies; and 
strengthening the competitiveness of United States clean technology 
industry in world trade markets. Priority shall be given to business 
competitions that are private sector led, encourage regional and 
interregional cooperation, and can demonstrate market-driven practices 
and show the creation of cost-effective green jobs through an annual 
publication of competition activities and directory of companies.
    (b) Eligibility.--An organization eligible for a grant under 
subsection (a) is--
            (1) any organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code; and
            (2) any sponsored entity of an organization described in 
        paragraph (1) that is operated as a nonprofit entity.
    (c) Priority.--In making grants under this section, the Secretary 
shall give priority to those organizations that can demonstrate broad 
funding support from private and other non-Federal funding sources to 
leverage Federal investment.
    (d) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $20,000,000.

SEC. 197. NATIONAL BIOENERGY PARTNERSHIP.

    (a) In General.--The Secretary of Energy shall establish a National 
Bioenergy Partnership to provide coordination among programs of State 
governments, the Federal Government, and the private sector that 
support the institutional and physical infrastructure necessary to 
promote the deployment of sustainable biomass fuels and bioenergy 
technologies for the United States.
    (b) Program.--The National Bioenergy Partnership shall consist of 
five regions, to be administered by the CONEG Policy Research Center, 
the Council of Great Lakes Governors, the Southern States Energy Board, 
the Western Governors Association, and the Pacific Regional Biomass 
Energy Partnership led by the Washington State University Energy 
Program.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2010 through 2014 to carry out 
this section--
            (1) $5,000,000, to be allocated among the 5 regions 
        described in subsection (b) on the basis of the number of 
        States in each region, for distribution among the member States 
        of that region based on procedures developed by the member 
        States of the region; and
            (2) $2,500,000, to be allocated equally among the 5 regions 
        described in subsection (b) for region-wide activities, 
        including technical assistance and regional studies and 
        coordination.

SEC. 198. OFFICE OF CONSUMER ADVOCACY.

    Section 319 of the Federal Power Act is amended to read as follows:

``SEC. 319. OFFICE OF CONSUMER ADVOCACY.

    ``(a) Office.--
            ``(1) Establishment.--There is established within the 
        Commission an Office of Consumer Advocacy to serve as an 
        advocate for the public interest. The Office of Administrative 
        Litigation within the Commission shall be incorporated into the 
        Office of Consumer Advocacy.
            ``(2) Director.--The Office shall be headed by a Director 
        to be appointed by the President by and with the advice and 
        consent of the Senate from among individuals who are licensed 
        attorneys admitted to the Bar of any State or of the District 
        of Columbia and who have experience in public utility 
        proceedings.
            ``(3) Duties.--The Office may--
                    ``(A) represent the interests of energy customers--
                            ``(i) on matters before the Commission 
                        concerning rates or service of public utilities 
                        and natural gas companies under the 
                        jurisdiction of the Commission;
                            ``(ii) as amicus curiae, in the review in 
                        the courts of the United States of rulings by 
                        the Commission in such matters; and
                            ``(iii) as amicus, in hearings and 
                        proceedings in other Federal regulatory 
                        agencies and commissions related to such 
                        matters;
                    ``(B) monitor and review energy customer complaints 
                and grievances on matters concerning rates or service 
                of public utilities and natural gas companies under the 
                jurisdiction of the Commission;
                    ``(C) investigate independently, or within the 
                context of formal proceedings, the services provided 
                by, the rates charged by, and the valuation of the 
                properties of, public utilities and natural gas 
                companies under the jurisdiction of the Commission;
                    ``(D) develop means, such as public dissemination 
                of information, consultative services, and technical 
                assistance, to ensure, to the maximum extent 
                practicable, that the interests of energy consumers are 
                adequately represented in the course of any hearing or 
                proceeding described in subparagraph (A);
                    ``(E) collect data concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission; and
                    ``(F) prepare and issue reports and 
                recommendations.
            ``(4) Compensation and powers.--The Director shall be 
        compensated at Level IV of the Executive Schedule. The Director 
        may--
                    ``(A) employ not more than 25 full-time 
                professional employees at appropriate levels in the GS 
                Scale and such additional support personnel as 
                required; and
                    ``(B) procure temporary and intermittent services 
                as needed.
            ``(5) Information from other federal agencies.--The 
        Director may request, from any department, agency, or 
        instrumentality of the United States such information as he 
        deems necessary to carry out his functions under this section. 
        Upon such request, the head of the department, agency, or 
        instrumentality concerned shall, to the extent practicable and 
        authorized by law, provide such information to the Office.
    ``(b) Consumer Advocacy Advisory Committee.--
            ``(1) Establishment.--The Director shall establish an 
        advisory committee to be known as Consumer Advocacy Advisory 
        Committee (in this section referred to as the `Advisory 
        Committee') to review rates, services, and disputes and to make 
        recommendations to the Director.
            ``(2) Composition.--The Director shall appoint 5 members to 
        the Advisory Committee including--
                    ``(A) 2 individuals representing State utility 
                consumer advocates; and
                    ``(B) 1 individual, from a nongovernmental 
                organization representing consumers.
            ``(3) Meetings.--The Advisory Committee shall meet at such 
        frequency as may be required to carry out its duties.
            ``(4) Reports.--The Director shall provide for the 
        publication of recommendations of the Advisory Committee on the 
        public website established for the Office.
            ``(5) Duration.--Notwithstanding any other provision of 
        law, the Advisory Committee shall continue in operation during 
        the period for which the Office exists.
    ``(c) Definitions.--
            ``(1) Energy customer.--The term `energy customer' means a 
        residential customer or a small commercial customer that 
        receives products or services directly or indirectly from a 
        public utility or natural gas company under the jurisdiction of 
        the Commission.
            ``(2) Natural gas company.--The term `natural gas company' 
        has the meaning given the term in section 2 of the Natural Gas 
        Act (15 U.S.C. 717a), as modified by section 601(a) of the 
        Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).
            ``(3) Office.--The term `Office' means the Office of 
        Consumer Advocacy established under this section.
            ``(4) Public utility.--The term `public utility' has the 
        meaning given the term in section 201(e) of this Act.
            ``(5) Small commercial customer.--The term `small 
        commercial customer' means a commercial customer that has a 
        peak demand of not more than 1,000 kilowatts per hour.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section.
    ``(e) Savings Clause.--Nothing in this section affects the rights 
or obligations of any State utility consumer advocate.''.

SEC. 199. DEVELOPMENT CORPORATION FOR RENEWABLE POWER BORROWING 
              AUTHORITY.

    (a) Determination.--No later than 6 months after the date of 
enactment of this Act, the Secretary of Energy, in coordination with 
the Secretary of Commerce, shall--
            (1) determine any geographic area within the contiguous 
        United States that lacks a Federal power marketing agency;
            (2) develop a plan or criteria for the geographic areas 
        identified in paragraph (1) regarding investment in renewable 
        energy and associated infrastructure within an area identified 
        in paragraph (1); and
            (3) identify any Federal agency within an area in paragraph 
        (1) that has, or could develop, the ability to facilitate the 
        investment in paragraph (2).
    (b) Report.--The Secretary of Energy, in coordination with the 
Secretary of Commerce, shall provide the determinations made under 
subsection (a) to the Committee on Energy and Commerce of the House of 
Representatives.
    (c) Establishment.--Based upon the determinations made pursuant to 
subsection (a), the Secretary of Energy, in coordination with the 
Secretary of Commerce, shall recommend to the Committee on Energy and 
Commerce of the House of Representatives the establishment of any new 
Federal lending authority, including authorization of additional 
lending authority for existing Federal agencies, not to exceed 
$3,500,000,000 per geographic area identified in subsection (a)(1).
    (d) Authorization.--$25,000,000 is authorized to be appropriated 
for fiscal year 2010 to carry out the provisions of this section.

SEC. 199A. STUDY.

    Not later than February 1, 2011, the Secretary of Energy shall 
transmit to the Congress a report showing the results of a study on the 
use of thorium-fueled nuclear reactors for national energy needs. Such 
report shall include a response to the International Atomic Energy 
Agency study entitled ``Thorium fuel cycle - Potential benefits and 
challenges'' (IAEA-TECDOC-1450).

                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

    Section 304 of the Energy Conservation and Production Act (42 
U.S.C. 6833) is amended to read as follows:

``SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

    ``(a) Energy Efficiency Targets.--
            ``(1) In general.--Except as provided in paragraph (2) or 
        (3), the national building code energy efficiency target for 
        the national average percentage improvement of a building's 
        energy performance when built to a code meeting the target 
        shall be--
                    ``(A) effective on the date of enactment of the 
                American Clean Energy and Security Act of 2009, 30 
                percent reduction in energy use relative to a 
                comparable building constructed in compliance with the 
                baseline code;
                    ``(B) effective January 1, 2014, for residential 
                buildings, and January 1, 2015, for commercial 
                buildings, 50 percent reduction in energy use relative 
                to the baseline code; and
                    ``(C) effective January 1, 2017, for residential 
                buildings, and January 1, 2018, for commercial 
                buildings, and every 3 years thereafter, respectively, 
                through January 1, 2029, and January 1, 2030, 5 percent 
                additional reduction in energy use relative to the 
                baseline code.
            ``(2) Consensus-based codes.--If on any effective date 
        specified in paragraph (1)(A), (B), or (C) a successor code to 
        the baseline codes provides for greater reduction in energy use 
        than is required under paragraph (1), the overall percentage 
        reduction in energy use provided by that successor code shall 
        be the national building code energy efficiency target.
            ``(3) Targets established by secretary.--The Secretary may 
        by rule establish a national building code energy efficiency 
        target for residential or commercial buildings achieving 
        greater reductions in energy use than the targets prescribed in 
        paragraph (1) or (2) if the Secretary determines that such 
        greater reductions in energy use can be achieved with a code 
        that is life cycle cost-justified and technically feasible. The 
        Secretary may by rule establish a national building code energy 
        efficiency target for residential or commercial buildings 
        achieving a reduction in energy use that is greater than zero 
        but less than the targets prescribed in paragraph (1) or (2) if 
        the Secretary determines that such lesser target is the maximum 
        reduction in energy use that can be achieved through a code 
        that is life cycle cost-justified and technically feasible.
            ``(4) Additional reductions in energy use.--Effective on 
        January 1, 2033, and once every 3 years thereafter, the 
        Secretary shall determine, after notice and opportunity for 
        comment, whether further energy efficiency building code 
        improvements for residential or commercial buildings, 
        respectively, are life cycle cost-justified and technically 
        feasible, and shall establish updated national building code 
        energy efficiency targets that meet such criteria.
            ``(5) Zero-net-energy buildings.--In setting targets under 
        this subsection, the Secretary shall consider ways to support 
        the deployment of distributed renewable energy technology, and 
        shall seek to achieve the goal of zero-net-energy commercial 
        buildings established in section 422 of the Energy Independence 
        and Security Act of 2007 (42 U.S.C. 17082).
            ``(6) Baseline code.--For purposes of this section, the 
        term `baseline code' means--
                    ``(A) for residential buildings, the 2006 
                International Energy Conservation Code (IECC) published 
                by the International Code Council (ICC); and
                    ``(B) for commercial buildings, the code published 
                in ASHRAE Standard 90.1-2004.
            ``(7) Consultation.--In establishing the targets required 
        by this section, the Secretary shall consult with the Director 
        of the National Institute of Standards and Technology.
    ``(b) National Energy Efficiency Building Codes.--
            ``(1) Requirement.--
                    ``(A) In general.--There shall be established 
                national energy efficiency building codes under this 
                subsection, for residential and commercial buildings, 
                sufficient to meet each of the national building code 
                energy efficiency targets established under subsection 
                (a), not later than the date that is 1 year after the 
                deadline for establishment of each such target, except 
                that the national energy efficiency building code 
                established to meet the target described in subsection 
                (a)(1)(A) shall be established by not later than 15 
                months after the effective date of that target.
                    ``(B) Existing code.--If the Secretary finds prior 
                to the date provided in subparagraph (A) for 
                establishing a national code for any target that one or 
                more energy efficiency building codes published by a 
                recognized developer of national energy codes and 
                standards meet or exceed the established target, the 
                Secretary shall select the code that meets the target 
                with the highest efficiency in the most cost-effective 
                manner, and such code shall be the national energy 
                efficiency building code.
                    ``(C) Requirement to establish code.--If the 
                Secretary does not make a finding under subparagraph 
                (B), the national energy efficiency building code shall 
                be established by rule by the Secretary under paragraph 
                (2).
            ``(2) Establishment by secretary.--
                    ``(A) Procedure.--In order to establish a national 
                energy efficiency building code as required under 
                paragraph (1)(C), the Secretary shall--
                            ``(i) not later than 6 months prior to the 
                        effective date for each target, review existing 
                        and proposed codes published or under review by 
                        recognized developers of national energy codes 
                        and standards;
                            ``(ii) determine the percentage of energy 
                        efficiency improvements that are or would be 
                        achieved in such published or proposed code 
                        versions relative to the target;
                            ``(iii) propose improvements to such 
                        published or proposed code versions sufficient 
                        to meet or exceed the target; and
                            ``(iv) unless a finding is made under 
                        paragraph (1)(B) with respect to a code 
                        published by a recognized developer of national 
                        energy codes and standards, adopt a code that 
                        meets or exceeds the relevant national building 
                        code energy efficiency target by not later than 
                        1 year after the effective date of each such 
                        target, and by not later than 15 months after 
                        the target is established under subsection 
                        (a)(1)(A).
                    ``(B) Calculations.--Each national energy 
                efficiency building code established by the Secretary 
                under this paragraph shall be set at the maximum level 
                the Secretary determines is life cycle cost-justified 
                and technically feasible, in accordance with the 
                following:
                            ``(i) Savings calculations.--Calculations 
                        of energy savings shall take into account the 
                        typical lifetimes of different products, 
                        measures, and system configurations.
                            ``(ii) Cost-effectiveness calculations.--
                        Calculations of life cycle cost-effectiveness 
                        shall be based on life cycle cost methods and 
                        procedures under section 544 of the National 
                        Energy Conservation Policy Act (42 U.S.C. 
                        8254), but shall incorporate to the extent 
                        feasible externalities such as impacts on 
                        climate change and on peak energy demand that 
                        are not already incorporated in assumed energy 
                        costs.
                    ``(C) Considerations.--In developing a national 
                energy efficiency building code under this paragraph, 
                the Secretary shall consider--
                            ``(i) for residential national energy 
                        efficiency building codes--
                                    ``(I) residential building 
                                standards published or proposed by 
                                ASHRAE;
                                    ``(II) building codes published or 
                                proposed by the International Code 
                                Council (ICC);
                                    ``(III) data from the Residential 
                                Energy Services Network (RESNET) on 
                                compliance measures utilized by 
                                consumers to qualify for the 
                                residential energy efficiency tax 
                                credits established under the Energy 
                                Policy Act of 2005;
                                    ``(IV) data and information from 
                                the Department of Energy's Building 
                                America Program;
                                    ``(V) data and information from the 
                                Energy Star New Homes program;
                                    ``(VI) data and information from 
                                the New Building Institute and similar 
                                organizations; and
                                    ``(VII) standards for practices and 
                                materials to achieve cool roofs in 
                                residential buildings, taking into 
                                consideration reduced air conditioning 
                                energy use as a function of cool roofs, 
                                the potential reduction in global 
                                warming from increased solar 
                                reflectance from buildings, and cool 
                                roofs criteria in State and local 
                                building codes and in national and 
                                local voluntary programs, without 
                                reduction of otherwise applicable 
                                ceiling insulation standards; and
                            ``(ii) for commercial national energy 
                        efficiency building codes--
                                    ``(I) commercial building standards 
                                proposed by ASHRAE;
                                    ``(II) building codes proposed by 
                                the International Code Council (ICC);
                                    ``(III) the Core Performance 
                                Criteria published by the New Buildings 
                                Institute;
                                    ``(IV) data and information 
                                developed by the Director of the 
                                Commercial High-Performance Green 
                                Building Office of the Department of 
                                Energy and any public-private 
                                partnerships established under that 
                                Office;
                                    ``(V) data and information from the 
                                Energy Star for Buildings program;
                                    ``(VI) data and information from 
                                the New Building Institute, RESNET, and 
                                similar organizations; and
                                    ``(VII) standards for practices and 
                                materials to achieve cool roofs in 
                                commercial buildings, taking into 
                                consideration reduced air conditioning 
                                energy use as a function of cool roofs, 
                                the potential reduction in global 
                                warming from increased solar 
                                reflectance from buildings, and cool 
                                roofs criteria in State and local 
                                building codes and in national and 
                                local voluntary programs, without 
                                reduction of otherwise applicable 
                                ceiling insulation standards.
                    ``(D) Consultation.--In establishing any national 
                energy efficiency building code required by this 
                section, the Secretary shall consult with the Director 
                of the National Institute of Standards and Technology.
            ``(3) Consensus standard assistance.--(A) To support the 
        development of consensus standards that may provide the basis 
        for national energy efficiency building codes, minimize 
        duplication of effort, encourage progress through consensus, 
        and facilitate the development of greater building efficiency, 
        the Secretary shall provide assistance to recognized developers 
        of national energy codes and standards to develop, and where 
        the relevant code has been adopted as the national code, 
        disseminate consensus based energy efficiency building codes as 
        provided in this paragraph.
            ``(B) Upon a finding by the Secretary that a code developed 
        by such a developer meets a target established under subsection 
        (a), the Secretary shall--
                    ``(i) send notice of the Secretary's finding to all 
                duly authorized or appointed State, tribal, and local 
                code agencies; and
                    ``(ii) provide sufficient support to such a 
                developer to make the code available on the Internet, 
                or to accomplish distribution of such code to all such 
                State, tribal, and local code agencies at no cost to 
                the State, tribal, and local code agencies.
            ``(C) The Secretary may contract with such a developer and 
        with other organizations with expertise on codes to provide 
        training for State, tribal, and local code officials and 
        building inspectors in the implementation and enforcement of 
        such code.
            ``(D) The Secretary may provide grants and other support to 
        such a developer to--
                    ``(i) develop appropriate refinements to such code; 
                and
                    ``(ii) support analysis of options for improvements 
                in the code to meet the next scheduled target.
            ``(4) Code developed by secretary.--If the Secretary 
        establishes a national energy efficiency building code under 
        paragraph (2), the Secretary shall--
                    ``(A) to the extent that such code is based on a 
                prior code developed by a recognized developer of 
                national energy codes and standards, negotiate and 
                provide appropriate compensation to such developer for 
                the use of the code materials that remain in the code 
                established by the Secretary; and
                    ``(B) disseminate the national energy efficiency 
                building codes to State, tribal, and local code 
                officials, and support training and provide guidance 
                and technical assistance to such officials as 
                appropriate.
    ``(c) State Adoption of Energy Efficiency Building Codes.--
            ``(1) Requirement.--Not later than 1 year after a national 
        energy efficiency building code for residential or commercial 
        buildings is established or revised under subsection (b), each 
        State--
                    ``(A) shall--
                            ``(i) review and update the provisions of 
                        its building code regarding energy efficiency 
                        to meet or exceed the target met in the new 
                        national energy efficiency building code, to 
                        achieve equivalent or greater energy savings;
                            ``(ii) document, where local governments 
                        establish building codes, that local 
                        governments representing not less than 80 
                        percent of the State's urban population have 
                        adopted the new national code, or have adopted 
                        local codes that meet or exceed the target met 
                        in the new national code to achieve equivalent 
                        or greater energy savings; or
                            ``(iii) adopt the new national code; and
                    ``(B) shall provide a certification to the 
                Secretary demonstrating that energy efficiency building 
                code provisions that apply pursuant to subparagraph (A) 
                in that State meet or exceed the target met by the new 
                national code, to achieve equivalent or greater energy 
                savings.
            ``(2) Confirmation.--
                    ``(A) Requirement.--Not later than 90 days after a 
                State certification is provided under paragraph (1)(B), 
                the Secretary shall determine whether the State's 
                energy efficiency building code provisions meet the 
                requirements of this subsection.
                    ``(B) Acceptance by secretary.--If the Secretary 
                determines under subparagraph (A) that the State's 
                energy efficiency building code or codes meet the 
                requirements of this subsection, the Secretary shall 
                accept the certification.
                    ``(C) Deficiency notice.--If the Secretary 
                determines under subparagraph (A) that the State's 
                building code or codes do not meet the requirements of 
                this subsection, the Secretary shall identify the 
                deficiency in meeting the national building code energy 
                efficiency target, and, to the extent possible, 
                indicate areas where further improvement in the State's 
                code provisions would allow the deficiency to be 
                eliminated.
                    ``(D) Revision of code and recertification.--A 
                State may revise its code or codes and submit a 
                recertification under paragraph (1)(B) to the Secretary 
                at any time.
            ``(3) Compliant code.--For the purposes of meeting the 
        target described in subsection (a)(1)(A) for residential 
        buildings, a State that adopts the code represented in 
        California's Title 24-2009 by the date 27 months after the date 
        of enactment of the American Clean Energy and Security Act of 
        2009 shall be considered to have met the requirements of this 
        subsection for the applicable period.
    ``(d) Application of National Code to State and Local 
Jurisdictions.--
            ``(1) In general.--Upon the expiration of 18 months after a 
        national energy efficiency building code is established under 
        subsection (b), in any jurisdiction where the State has not had 
        a certification relating to that code accepted by the Secretary 
        under subsection (c)(2)(B), and the local government has not 
        had a certification relating to that code accepted by the 
        Secretary under subsection (e)(5), the national energy 
        efficiency building code shall become the applicable energy 
        efficiency building code for such jurisdiction.
            ``(2) Conflicts.--In the event of a conflict between a 
        provision of the national energy efficiency building code and a 
        provision of other applicable energy codes, the national energy 
        efficiency building code shall apply. If there is a conflict 
        between a provision of the national energy efficiency building 
        code and a provision of any applicable fire code, life safety 
        code, egress code, or accessibility code, the Secretary shall 
        take appropriate actions to resolve such conflict in a manner 
        that does not compromise the objectives of such codes.
            ``(3) State legislative adoption.--In a State in which the 
        relevant building energy code is adopted legislatively, the 
        deadline in paragraph (1) shall not be earlier than 1 year 
        after the first day that the legislature meets following 
        establishment of a national energy efficiency building code.
            ``(4) Notice of intent to enforce.--A State or locality 
        that enforces building codes may assume responsibility for 
        enforcing the national energy efficiency building code by 
        notifying the Secretary to that effect not later than three 
        months after the date established under paragraph (1).
            ``(5) Violations.--Violations of this section shall be 
        defined as follows:
                    ``(A) If the building is subject to the 
                requirements of a State energy efficiency building code 
                with respect to which a certification has been accepted 
                by the Secretary under subsection (c)(2)(B) or a local 
                energy efficiency building code with respect to which a 
                certification has been accepted by the Secretary 
                pursuant to subsection (e)(5), or the requirements of 
                the national energy efficiency building code in a State 
                where the State or locality has notified the Secretary 
                of its intent to enforce the provisions of the national 
                energy efficiency building code, a violation shall be 
                determined pursuant to the relevant provisions of State 
                or local law.
                    ``(B) If the building is subject to the 
                requirements of a national energy efficiency building 
                code made applicable under paragraph (1) of this 
                subsection, except as provided in subparagraph (A), a 
                violation shall be defined by the Secretary pursuant to 
                subsection (g).
    ``(e) State Enforcement of Energy Efficiency Building Codes.--
            ``(1) In general.--Each State, or where applicable under 
        State law each local government, shall implement and enforce 
        applicable State or local codes with respect to which a 
        certification was accepted by the Secretary under subsection 
        (c)(2)(B) or paragraph (5) of this subsection, or the national 
        energy efficiency building codes, as provided in this 
        subsection.
            ``(2) State certification.--Not later than 2 years after 
        the date of a certification under subsection (c)(1) or the 
        application of a national energy efficiency building code under 
        subsection (d)(1), each State shall certify that it has--
                    ``(A) achieved compliance with--
                            ``(i) State codes, or, as provided under 
                        State law, local codes, with respect to which a 
                        certification was accepted by the Secretary 
                        under subsection (c)(2)(B); or
                            ``(ii) the national energy efficiency 
                        building code, as applicable; or
                    ``(B) for any certification submitted within 7 
                years after the date of enactment of the American Clean 
                Energy and Security Act of 2009, made significant 
                progress toward achieving such compliance.
            ``(3) Achieving compliance.--A State shall be considered to 
        achieve compliance with a code described in paragraph (2)(A) if 
        at least 90 percent of new and substantially renovated building 
        space in that State in the preceding year upon inspection meets 
        the requirements of the code. A certification under paragraph 
        (2) shall include documentation of the rate of compliance based 
        on--
                    ``(A) independent inspections of a random sample of 
                the new and substantially renovated buildings covered 
                by the code in the preceding year; or
                    ``(B) an alternative method that yields an accurate 
                measure of compliance as determined by the Secretary.
            ``(4) Significant progress.--A State shall be considered to 
        have made significant progress toward achieving compliance with 
        a code described in paragraph (2)(A) if--
                    ``(A) the State has developed a plan, including for 
                hiring enforcement staff, providing training, providing 
                manuals and checklists, and instituting enforcement 
                programs, designed to achieve full compliance within 5 
                years after the date of the adoption of the code;
                    ``(B) the State is taking significant, timely, and 
                measurable action to implement that plan;
                    ``(C) the State has not reduced its expenditures 
                for code enforcement; and
                    ``(D) at least 50 percent of new and substantially 
                renovated building space in the State in the preceding 
                year upon inspection meets the requirements of the 
                code.
            ``(5) Secretary's determination.--Not later than 90 days 
        after a State certification under paragraph (2), the Secretary 
        shall determine whether the State has demonstrated that it has 
        complied with the requirements of this subsection, including 
        accurate measurement of compliance, or that it has made 
        significant progress toward compliance. If such determination 
        is positive, the Secretary shall accept the certification. If 
        the determination is negative, the Secretary shall identify the 
        areas of deficiency.
            ``(6) Out of compliance.--
                    ``(A) In general.--Any State for which the 
                Secretary has not accepted a certification under 
                paragraph (5) by the dates specified in paragraph (2) 
                is out of compliance with this section.
                    ``(B) Local compliance.--In any State that is out 
                of compliance with this section as provided in 
                subparagraph (A), a local government may be in 
                compliance with this section by meeting all 
                certification requirements of this subsection.
                    ``(C) Noncompliance.--Any State that is not in 
                compliance with this section, as provided in 
                subparagraph (A), shall, until the State regains such 
                compliance, be ineligible to receive--
                            ``(i) emission allowances pursuant to 
                        subsection (h)(1);
                            ``(ii) Federal funding in excess of that 
                        State's share (calculated according to the 
                        allocation formula in section 363 of the Energy 
                        Policy and Conservation Act (42 U.S.C. 6323)) 
                        of $125,000,000 each year; and
                            ``(iii) for--
                                    ``(I) the first year for which the 
                                State is out of compliance, 25 percent 
                                of any additional funding or other 
                                items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009;
                                    ``(II) the second year for which 
                                the State is out of compliance, 50 
                                percent of any additional funding or 
                                other items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009;
                                    ``(III) the third year for which 
                                the State is out of compliance, 75 
                                percent of any additional funding or 
                                other items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009; and
                                    ``(IV) the fourth and subsequent 
                                years for which the State is out of 
                                compliance, 100 percent of any 
                                additional funding or other items of 
                                monetary value otherwise provided under 
                                the American Clean Energy and Security 
                                Act of 2009.
    ``(f) Federal Enforcement and Training.--Where a State fails and 
local governments in that State also fail to enforce the applicable 
State or national energy efficiency building codes, the Secretary shall 
enforce such codes, as follows:
            ``(1) The Secretary shall establish, by rule, within 2 
        years after the date of enactment of the American Clean Energy 
        and Security Act of 2009, an energy efficiency building code 
        enforcement capability.
            ``(2) Such enforcement capability shall be designed to 
        achieve 90 percent compliance with such code in any State 
        within 1 year after the date of the Secretary's determination 
        that such State is out of compliance with this section.
            ``(3) The Secretary may set and collect reasonable 
        inspection fees to cover the costs of inspections required for 
        such enforcement. Revenue from fees collected shall be 
        available to the Secretary to carry out the requirements of 
        this section upon appropriation.
            ``(4) In any jurisdiction to which this subsection applies, 
        the Secretary shall coordinate enforcement of the national 
        energy efficiency building code with State and local code 
        enforcement of other building codes.
            ``(5) In any jurisdiction to which this subsection applies, 
        the Secretary shall enhance compliance by conducting training 
        and education of builders and other professionals in the 
        jurisdiction concerning the national energy efficiency building 
        code.
            ``(6) The Secretary shall coordinate with professional 
        organizations representing code officials, architects, 
        engineers, builders, and other experts to develop training 
        curricula concerning the national energy efficiency building 
        code.
            ``(7) If the Secretary enforces such codes under this 
        subsection, the Secretary may, as appropriate, redefine 
        violations of such codes.
    ``(g) Enforcement Procedures.--The Secretary shall propose and, not 
later than 3 years after the date of enactment of the American Clean 
Energy and Security Act of 2009, shall define by rule violations of the 
energy efficiency building codes to be enforced by the Secretary 
pursuant to this section, and the penalties that shall apply to 
violators, in any jurisdiction in which the national energy efficiency 
building code has been made applicable under subsection (d)(1). To the 
extent that the Secretary determines that the authority to adopt and 
impose such violations and penalties by rule requires further statutory 
authority, the Secretary shall report such determination to Congress as 
soon as such determination is made, but not later than 1 year after the 
enactment of the American Clean Energy and Security Act of 2009.
    ``(h) Federal Support.--
            ``(1) Allowance allocation for state compliance.--For each 
        vintage year from 2012 through 2050, the Administrator shall 
        distribute allowances allocated pursuant to section 782(g)(2) 
        of the Clean Air Act to the SEED Account for each State. Such 
        allowances shall be distributed according to a formula 
        established by the Secretary as follows:
                    ``(A) One-fifth in an equal amount to each of the 
                50 States and United States territories.
                    ``(B) Two-fifths as a function of the relative 
                energy use in all buildings in each State in the most 
                recent year for which data is available.
                    ``(C) Two-fifths based on the number of building 
                construction starts recorded in each State, the number 
                of new building permits applied for in each State, or 
                other relevant available data indicating building 
                activity in each State, in the judgment of the 
                Secretary, for the year prior to the year of the 
                distribution.
            ``(2) Allowance allocation to local governments.--In the 
        instance that the Secretary certifies that one or more local 
        governments are in compliance with this section pursuant to 
        subsection (e)(6)(B), the Administrator shall provide to each 
        such local government the portion of the emission allowances 
        that would have been provided to that State as a function of 
        the population of that locality as a proportion of the 
        population of that State as a whole.
            ``(3) Unallocated allowances.--To the extent that 
        allowances are not provided to State or local governments for 
        lack of certification in any year, those allowances shall be 
        added to the amount provided to those States and local 
        governments that are certified as eligible in that year.
            ``(4) Use of allowances.--Each State or each local 
        government shall use such emission allowances as it receives 
        pursuant to this section exclusively for the purposes of this 
        section, including covering a reasonable portion of the costs 
        of the development, adoption, implementation, and enforcement 
        of a State or local energy efficiency building code that meets 
        the national building code energy efficiency targets, or the 
        national energy efficiency building code. In a State where 
        local governments provide substantially all building code 
        enforcement, a minimum of 50 percent of the allowance value 
        received pursuant to this section shall be distributed to local 
        governments as a function of the relative populations of such 
        localities. In a State where local and State governments share 
        building code enforcement duties, the State and local shares of 
        allowance value required for enforcement shall be allocated in 
        proportion to the number of building inspections performed by 
        each level of government, and the share for local governments 
        shall be distributed as a function of the relative populations 
        of such localities. States shall further ensure that the 
        allowance value made available pursuant to section 782 of the 
        Clean Air Act and section 132 of the American Clean Energy and 
        Security Act of 2009 is provided to the applicable State or 
        local governmental entities as necessary to adopt and implement 
        energy efficiency building codes, provide training for 
        inspectors, ensure compliance, and provide such other functions 
        as necessary. Actions taken by local authorities pursuant to 
        this section shall constitute an acceptable use of funds 
        authorized pursuant to the Energy Efficiency and Conservation 
        Block Grant program under section 544 of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 17154).
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $25,000,000, and such 
additional sums as may be necessary to provide enforcement of a 
national energy efficiency building code, for each of fiscal years 2010 
through 2020, and such sums thereafter as may be necessary to support 
the purposes of this section.
    ``(j) Annual Reports by Secretary.--The Secretary shall annually 
submit to Congress, and publish in the Federal Register, a report on--
            ``(1) the status of national energy efficiency building 
        codes;
            ``(2) the status of energy efficiency building code 
        adoption and compliance in the States;
            ``(3) the implementation of this section;
            ``(4) the status of Federal enforcement of building codes, 
        including coordination with State and local enforcement, and 
        the extent and resolution of any conflicts between the national 
        energy efficiency building code and other residential and 
        commercial building codes in force in the same jurisdictions; 
        and
            ``(5) impacts of past action under this section, and 
        potential impacts of further action, on lifetime energy use by 
        buildings, including resulting energy and cost savings.''.

SEC. 202. BUILDING RETROFIT PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Assisted housing.--The term ``assisted housing'' means 
        those properties receiving project-based assistance pursuant to 
        section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), 
        section 811 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 8013), section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f), or similar programs.
            (2) Nonresidential building.--The term ``nonresidential 
        building'' means a building with a primary use or purpose other 
        than residential housing, including any building used for 
        commercial offices, schools, academic and other public and 
        private institutions, nonprofit organizations including faith-
        based organizations, hospitals, hotels, and other 
        nonresidential purposes. Such buildings shall include mixed-use 
        properties used for both residential and nonresidential 
        purposes in which more than half of building floor space is 
        nonresidential.
            (3) Performance-based building retrofit program.--The term 
        ``performance-based building retrofit program'' means a program 
        that determines building energy efficiency success based on 
        actual measured savings after a retrofit is complete, as 
        evidenced by energy invoices or evaluation protocols.
            (4) Prescriptive building retrofit program.--The term 
        ``prescriptive building retrofit program'' means a program that 
        projects building retrofit energy efficiency success based on 
        the known effectiveness of measures prescribed to be included 
        in a retrofit.
            (5) Public housing.--The term ``public housing'' means 
        properties receiving assistance under section 9 of the United 
        States Housing Act of 1937 (42 U.S.C. 1437g).
            (6) Recommissioning; retrocommissioning.--The terms 
        ``recommissioning'' and ``retrocommissioning'' have the meaning 
        given those terms in section 543(f)(1) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8253(f)(1)).
            (7) Residential building.--The term ``residential 
        building'' means a building whose primary use is residential. 
        Such buildings shall include single-family homes (both attached 
        and detached), owner-occupied units in larger buildings with 
        their own dedicated space-conditioning systems, apartment 
        buildings, multi-unit condominium buildings, public housing, 
        assisted housing, and buildings used for both residential and 
        nonresidential purposes in which more than half of building 
        floor space is residential.
            (8) State energy program.--The term ``State Energy 
        Program'' means the program under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.).
    (b) Establishment.--The Administrator shall develop and implement, 
in consultation with the Secretary of Energy, standards for a national 
energy and environmental building retrofit policy for single-family and 
multifamily residences. The Administrator shall develop and implement, 
in consultation with the Secretary of Energy and the Director of 
Commercial High-Performance Green Buildings, standards for a national 
energy and environmental building retrofit policy for nonresidential 
buildings. The programs to implement the residential and nonresidential 
policies based on the standards developed under this section shall 
together be known as the Retrofit for Energy and Environmental 
Performance (REEP) program.
    (c) Purpose.--The purpose of the REEP program is to facilitate the 
retrofitting of existing buildings across the United States to achieve 
maximum cost-effective energy efficiency improvements and significant 
improvements in water use and other environmental attributes.
    (d) Federal Administration.--
            (1) Existing programs.--In creating and operating the REEP 
        program--
                    (A) the Administrator shall make appropriate use of 
                existing programs, including the Energy Star program 
                and in particular the Environmental Protection Agency 
                Energy Star for Buildings program; and
                    (B) the Secretary of Energy shall make appropriate 
                use of existing programs, including delegating 
                authority to the Director of Commercial High-
                Performance Green Buildings appointed under section 421 
                of the Energy Independence and Security Act of 2007 (42 
                U.S.C. 17081), who shall designate and provide funding 
                to support a high-performance green building 
                partnership consortium pursuant to subsection (f) of 
                such section to support efforts under this section.
            (2) Consultation and coordination.--The Administrator and 
        the Secretary of Energy shall consult with and coordinate with 
        the Secretary of Housing and Urban Development in carrying out 
        the REEP program with regard to retrofitting of public housing 
        and assisted housing. As a result of such consultation, the 
        Administrator shall establish standards to ensure that 
        retrofits of public housing and assisted housing funded 
        pursuant to this section are cost-effective, including 
        opportunities to address the potential co-performance of repair 
        and replacement needs that may be supported with other forms of 
        Federal assistance. Owners of public housing or assisted 
        housing receiving funding through the REEP program shall agree 
        to continue to provide affordable housing consistent with the 
        provisions of the authorizing legislation governing each 
        program for an additional period commensurate with the funding 
        received, as determined in accordance with guidelines 
        established by the Secretary of Housing and Urban Development.
            (3) Assistance.--The Administrator and the Secretary of 
        Energy shall provide consultation and assistance to State and 
        local agencies for the establishment of revolving loan funds, 
        loan guarantees, or other forms of financial assistance under 
        this section.
    (e) State and Local Administration.--
            (1) Designation and delegation.--A State may designate one 
        or more agencies or entities, including those regulated by the 
        State, to carry out the purposes of this section, but shall 
        designate one entity or individual as the principal point of 
        contact for the Administrator regarding the REEP Program. The 
        designated State agency, agencies, or entities may delegate 
        performance of appropriate elements of the REEP program, upon 
        their request and subject to State law, to counties, 
        municipalities, appropriate public agencies, and other 
        divisions of local government, as well as to entities regulated 
        by the State. In making any such designation or delegation, a 
        State shall give priority to entities that administer existing 
        comprehensive retrofit programs, including those under the 
        supervision of State utility regulators. States shall maintain 
        responsibility for meeting the standards and requirements of 
        the REEP program. In any State that elects not to administer 
        the REEP program, a unit of local government may propose to do 
        so within its jurisdiction, and if the Administrator finds that 
        such local government is capable of administering the program, 
        the Administrator may provide allowances to that local 
        government, prorated according to the population of the local 
        jurisdiction relative to the population of the State, for 
        purposes of the REEP program.
            (2) Employment.--States and local government entities may 
        administer a REEP program in a manner that authorizes public or 
        regulated investor-owned utilities, building auditors and 
        inspectors, contractors, nonprofit organizations, for-profit 
        companies, and other entities to perform audits and retrofit 
        services under this section. A State may provide incentives for 
        retrofits without direct participation by the State or its 
        agents, so long as the resulting savings are measured and 
        verified. A State or local administrator of a REEP program 
        shall seek to ensure that sufficient qualified entities are 
        available to support retrofit activities so that building 
        owners have a competitive choice among qualified auditors, 
        raters, contractors, and providers of services related to 
        retrofits. Nothing in this section is intended to deny the 
        right of a building owner to choose the specific providers of 
        retrofit services to engage for a retrofit project in that 
        owner's building.
            (3) Equal incentives for equal improvement.--In general, 
        the States should strive to offer the same levels of incentives 
        for retrofits that meet the same efficiency improvement goals, 
        regardless of whether the State, its agency or entity, or the 
        building owner has conducted the retrofit achieving the 
        improvement, provided the improvement is measured and verified.
    (f) Elements of Reep Program.--The Administrator, in consultation 
with the Secretary of Energy, shall establish goals, guidelines, 
practices, and standards for accomplishing the purpose stated in 
subsection (c), and shall annually review and, as appropriate, revise 
such goals, guidelines, practices, and standards. The program under 
this section shall include the following:
            (1) Residential Energy Services Network (RESNET) or 
        Building Performance Institute (BPI) analyst certification of 
        residential building energy and environment auditors, 
        inspectors, and raters, or an equivalent certification system 
        as determined by the Administrator.
            (2) BPI certification or licensing by States of residential 
        building energy and environmental retrofit contractors, or an 
        equivalent certification or licensing system as determined by 
        the Administrator.
            (3) Provision of BPI, RESNET, or other appropriate 
        information on equipment and procedures, as determined by the 
        Administrator, that contractors can use to test the energy and 
        environmental efficiency of buildings effectively (such as 
        infrared photography and pressurized testing, and tests for 
        water use and indoor air quality).
            (4) Provision of clear and effective materials to describe 
        the testing and retrofit processes for typical buildings.
            (5) Guidelines for offering and managing prescriptive 
        building retrofit programs and performance-based building 
        retrofit programs for residential and nonresidential buildings.
            (6) Guidelines for applying recommissioning and 
        retrocommissioning principles to improve a building's 
        operations and maintenance procedures.
            (7) A requirement that building retrofits conducted 
        pursuant to a REEP program utilize, especially in all air-
        conditioned buildings, roofing materials with high solar energy 
        reflectance, unless inappropriate due to green roof management, 
        solar energy production, or for other reasons identified by the 
        Administrator, in order to reduce energy consumption within the 
        building, increase the albedo of the building's roof, and 
        decrease the heat island effect in the area of the building, 
        without reduction of otherwise applicable ceiling insulation 
        standards.
            (8) Determination of energy savings in a performance-based 
        building retrofit program through--
                    (A) for residential buildings, comparison of before 
                and after retrofit scores on the Home Energy Rating 
                System (HERS) Index, where the final score is produced 
                by an objective third party;
                    (B) for nonresidential buildings, Environmental 
                Protection Agency Portfolio Manager benchmarks; or
                    (C) for either residential or nonresidential 
                buildings, use of an Administrator-approved simulation 
                program by a contractor with the appropriate 
                certification, subject to appropriate software 
                standards and verification of at least 15 percent of 
                all work done, or such other percentage as the 
                Administrator may determine.
            (9) Guidelines for utilizing the Energy Star Portfolio 
        Manager, the Home Energy Rating System (HERS) rating system, 
        Home Performance with Energy Star program approvals, and any 
        other tools associated with the retrofit program.
            (10) Requirements and guidelines for post-retrofit 
        inspection and confirmation of work and energy savings.
            (11) Detailed descriptions of funding options for the 
        benefit of State and local governments, along with model forms, 
        accounting aids, agreements, and guides to best practices.
            (12) Guidance on opportunities for--
                    (A) rating or certifying retrofitted buildings as 
                Energy Star buildings, or as green buildings under a 
                recognized green building rating system;
                    (B) assigning Home Energy Rating System (HERS) or 
                similar ratings; and
                    (C) completing any applicable building performance 
                labels.
            (13) Sample materials for publicizing the program to 
        building owners, including public service announcements and 
        advertisements.
            (14) Processes for tracking the numbers and locations of 
        buildings retrofitted under the REEP program, with information 
        on projected and actual savings of energy and its value over 
        time.
    (g) Requirements.--As a condition of receiving allowances for the 
REEP program pursuant to this Act, a State or qualifying local 
government shall--
            (1) adopt the standards for training, certification of 
        contractors, certification of buildings, and post-retrofit 
        inspection as developed by the Administrator for residential 
        and nonresidential buildings, respectively, except as necessary 
        to match local conditions, needs, efficiency opportunities, or 
        other local factors, or to accord with State laws or 
        regulations, and then only after the Administrator approves 
        such a variance;
            (2) establish fiscal controls and accounting procedures 
        (which conform to generally accepted government accounting 
        principles) sufficient to ensure proper accounting during 
        appropriate accounting periods for payments received and 
        disbursements, and for fund balances; and
            (3) agree to make not less than 10 percent of allowance 
        value received pursuant to section 132(c)(2) for dedicated 
        funding of its REEP program available on a preferential basis 
        for retrofit projects proposed for public housing and assisted 
        housing, provided that--
                    (A) none of such funds shall be used for demolition 
                of such housing;
                    (B) such retrofits not shall not be used to justify 
                any increase in rents charged to residents of such 
                housing; and
                    (C) owners of such housing shall agree to continue 
                to provide affordable housing consistent with the 
                provisions of the authorizing legislation governing 
                each program for an additional period commensurate with 
                the funding received.
The Administrator shall conduct or require each State to have such 
independent financial audits of REEP-related funding as the 
Administrator considers necessary or appropriate to carry out the 
purposes of this section.
    (h) Options to Support Reep Program.--The emission allowances 
provided pursuant to this Act to the States SEED Accounts shall support 
the implementation through State REEP programs of alternate means of 
creating incentives for, or reducing financial barriers to, improved 
energy and environmental performance in buildings, consistent with this 
section, including--
            (1) implementing prescriptive building retrofit programs 
        and performance-based building retrofit programs;
            (2) providing credit enhancement, interest rate subsidies, 
        loan guarantees, or other credit support;
            (3) providing initial capital for public revolving fund 
        financing of retrofits, with repayments by beneficiary building 
        owners over time through their tax payments, calibrated to 
        create net positive cash flow to the building owner;
            (4) providing funds to support utility-operated retrofit 
        programs with repayments over time through utility rates, 
        calibrated to create net positive cash flow to the building 
        owner, and transferable from one building owner to the next 
        with the building's utility services;
            (5) providing funds to local government programs to provide 
        REEP services and financial assistance; and
            (6) other means proposed by State and local agencies, 
        subject to the approval of the Administrator.
    (i) Support for Program.--
            (1) Use of allowances.--Direct Federal support for the REEP 
        program is provided through the emission allowances allocated 
        to the States' SEED Accounts pursuant to section 132 of this 
        Act. To the extent that a State provides allowances to local 
        governments within the State to implement elements of the REEP 
        Program, that shall be deemed a distribution of such allowances 
        to units of local government pursuant to subsection (c)(1) of 
        that section.
            (2) Initial award limits.--Except as provided in paragraph 
        (3), State and local REEP programs may make per-building direct 
        expenditures for retrofit improvements, or their equivalent in 
        indirect or other forms of financial support, from funds 
        derived from the sale of allowances received directly from the 
        Administrator in amounts not to exceed the following amounts 
        per unit:
                    (A) Residential building program.--
                            (i) Awards.--For residential buildings--
                                    (I) support for a free or low-cost 
                                detailed building energy audit that 
                                prescribes measures sufficient to 
                                achieve at least a 20 percent reduction 
                                in energy use, by providing an 
                                incentive equal to the documented cost 
                                of such audit, but not more than $200, 
                                in addition to any earned by achieving 
                                a 20 percent or greater efficiency 
                                improvement;
                                    (II) a total of $1,000 for a 
                                combination of measures, prescribed in 
                                an audit conducted under subclause (I), 
                                designed to reduce energy consumption 
                                by more than 10 percent, and $2,000 for 
                                a combination of measures prescribed in 
                                such an audit, designed to reduce 
                                energy consumption by more than 20 
                                percent;
                                    (III) $3,000 for demonstrated 
                                savings of 20 percent, pursuant to a 
                                performance-based building retrofit 
                                program; and
                                    (IV) $1,000 for each additional 5 
                                percentage points of energy savings 
                                achieved beyond savings for which 
                                funding is provided under subclause 
                                (II) or (III).
                        Funding shall not be provided under clauses 
                        (II) and (III) for the same energy savings.
                            (ii) Maximum percentage.--Awards under 
                        clause (i) shall not exceed 50 percent of 
                        retrofit costs for each building. For buildings 
                        with multiple residential units, awards under 
                        clause (i) shall not be greater than 50 percent 
                        of the total cost of retrofitting the building, 
                        prorated among individual residential units on 
                        the basis of relative costs of the retrofit. In 
                        the case of public housing and assisted 
                        housing, the 50 percent contribution matching 
                        the contribution from REEP program funds may 
                        come from any other source, including other 
                        Federal funds.
                            (iii) Additional awards.--Additional awards 
                        may be provided for purposes of increasing 
                        energy efficiency, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), in the form of 
                        grants of not more than $600 for measures 
                        projected or measured (using an appropriate 
                        method approved by the Administrator) to 
                        achieve at least 35 percent potable water 
                        savings through equipment or systems with an 
                        estimated service life of not less than 7 
                        years, and not more than an additional $20 may 
                        be provided for each additional one percent of 
                        such savings, up to a maximum total grant of 
                        $1,200.
                    (B) Nonresidential building program.--
                            (i) Awards.--For nonresidential buildings--
                                    (I) support for a free or low-cost 
                                detailed building energy audit that 
                                prescribes, as part of a energy-
                                reducing measures sufficient to achieve 
                                at least a 20 percent reduction in 
                                energy use, by providing an incentive 
                                equal to the documented cost of such 
                                audit, but not more than $500, in 
                                addition to any award earned by 
                                achieving a 20 percent or greater 
                                efficiency improvement;
                                    (II) $0.15 per square foot of 
                                retrofit area for demonstrated energy 
                                use reductions from 20 percent to 30 
                                percent;
                                    (III) $0.75 per square foot for 
                                demonstrated energy use reductions from 
                                30 percent to 40 percent;
                                    (IV) $1.60 per square foot for 
                                demonstrated energy use reductions from 
                                40 percent to 50 percent; and
                                    (V) $2.50 per square foot for 
                                demonstrated energy use reductions 
                                exceeding 50 percent.
                            (ii) Maximum percentage.--Amounts provided 
                        under subclauses (II) through (V) of clause (i) 
                        combined shall not exceed 50 percent of the 
                        total retrofit cost of a building. In 
                        nonresidential buildings with multiple units, 
                        such awards shall be prorated among individual 
                        units on the basis of relative costs of the 
                        retrofit.
                            (iii) Additional awards.--Additional awards 
                        may be provided, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), as follows:
                                    (I) Water.--For purposes of 
                                increasing energy efficiency, grants 
                                may be made for whole building potable 
                                water use reduction (using an 
                                appropriate method approved by the 
                                Administrator) for up to 50 percent of 
                                the total retrofit cost, including 
                                amounts up to--
                                            (aa) $24.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 40 percent or 
                                        more;
                                            (bb) $27.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 50 percent or 
                                        more; and
                                            (cc) $30.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 60 percent or 
                                        more.
                                    (II) Environmental improvements.--
                                Additional awards of up to $1,000 may 
                                be granted for the inclusion of other 
                                environmental attributes that the 
                                Administrator, in consultation with the 
                                Secretary, identifies as contributing 
                                to energy efficiency. Such attributes 
                                may include, but are not limited to 
                                waste diversion and the use of 
                                environmentally preferable materials 
                                (including salvaged, renewable, or 
                                recycled materials, and materials with 
                                no or low-VOC content). The 
                                Administrator may recommend that States 
                                develop such standards as are necessary 
                                to account for local or regional 
                                conditions that may affect the 
                                feasibility or availability of 
                                identified resources and attributes.
                            (iv) Indoor air quality minimum.--
                        Nonresidential buildings receiving incentives 
                        under this section must satisfy at a minimum 
                        the most recent version of ASHRAE Standard 62.1 
                        for ventilation, or the equivalent as 
                        determined by the Administrator. A State may 
                        issue a waiver from this requirement to a 
                        building project on a showing that such 
                        compliance is infeasible due to the physical 
                        constraints of the building's existing 
                        ventilation system, or such other limitations 
                        as may be specified by the Administrator.
                    (C) Disaster damaged buildings.--Any source of 
                funds, including Federal funds provided through the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, shall qualify as the building owner's 
                50 percent contribution, in order to match the 
                contribution of REEP funds, so long as the REEP funds 
                are only used to improve the energy efficiency of the 
                buildings being reconstructed. In addition, the 
                appropriate Federal agencies providing assistance to 
                building owners through the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act shall make 
                information available, following a disaster, to 
                building owners rebuilding disaster damaged buildings 
                with assistance from the Act, that REEP funds may be 
                used for energy efficiency improvements.
                    (D) Historic buildings.--Notwithstanding 
                subparagraphs (A) and (B), a building in or eligible 
                for the National Register of Historic Places shall be 
                eligible for awards under this paragraph in amounts up 
                to 120 percent of the amounts set forth in 
                subparagraphs (A) and (B).
                    (E) Supplemental support.--State and local 
                governments may supplement the per-building 
                expenditures under this paragraph with funding from 
                other sources.
            (3) Adjustment.--The Administrator may adjust the specific 
        dollar limits funded by the sale of allowances pursuant to 
        paragraph (2) in years subsequent to the second year after the 
        date of enactment of this Act, and every 2 years thereafter, as 
        the Administrator determines necessary to achieve optimum cost-
        effectiveness and to maximize incentives to achieve energy 
        efficiency within the total building award amounts provided in 
        that paragraph, and shall publish and hold constant such 
        revised limits for at least 2 years.
    (j) Report to Congress.--The Administrator shall conduct an annual 
assessment of the achievements of the REEP program in each State, shall 
prepare an annual report of such achievements and any recommendations 
for program modifications, and shall provide such report to Congress at 
the end of each fiscal year during which funding or other resources 
were made available to the States for the REEP Program.
    (k) Other Sources of Federal Support.--
            (1) Additional state energy program funds.--Any Federal 
        funding provided to a State Energy Program that is not required 
        to be expended for a different federally designated purpose may 
        be used to support a REEP program.
            (2) Program administration.--State Energy Offices or 
        designated State agencies may expend up to 10 percent of 
        available allowance value provided under this section for 
        program administration.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated for the purposes of this section, for each 
        of fiscal years 2010, 2011, 2012, and 2013--
                    (A) $50,000,000 to the Administrator for program 
                administration costs; and
                    (B) $20,000,000 to the Secretary of Energy for 
                program administration costs.

SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.

    (a) Definitions.--In this section:
            (1) Manufactured home.--The term ``manufactured home'' has 
        the meaning given such term in section 603 of the National 
        Manufactured Housing Construction and Safety Standards Act of 
        1974 (42 U.S.C. 5402).
            (2) Energy star qualified manufactured home.--The term 
        ``Energy Star qualified manufactured home'' means a 
        manufactured home that has been designed, produced, and 
        installed in accordance with Energy Star's guidelines by an 
        Energy Star certified plant.
    (b) Purpose.--The purpose of this section is to assist low-income 
households residing in manufactured homes constructed prior to 1976 to 
save energy and energy expenditures by providing support toward the 
purchase of new Energy Star qualified manufactured homes.
    (c) State Implementation of Program.--
            (1) Manufactured home replacement program.--Any State may 
        provide to the owner of a manufactured home constructed prior 
        to 1976 a rebate to use toward the purchase of a new Energy 
        Star qualified manufactured home pursuant to this section.
            (2) Use of allowances.--Direct Federal support for the 
        program established in this section is provided through the 
        emission allowances allocated to the States' SEED Accounts 
        pursuant to section 132 of this Act. To the extent that a State 
        provides allowances to local governments within the State to 
        implement this program, that shall be deemed a distribution of 
        such allowances to units of local government pursuant to 
        subsection (c)(1) of that section.
            (3) Rebates.--
                    (A) Primary residence requirement.--A rebate 
                described under paragraph (1) may only be made to an 
                owner of a manufactured home constructed prior to 1976 
                that is used on a year-round basis as a primary 
                residence.
                    (B) Dismantling and replacement.--A rebate 
                described under paragraph (1) may be made only if the 
                manufactured home constructed prior to 1976 will be--
                            (i) rendered unusable for human habitation 
                        (including appropriate recycling); and
                            (ii) replaced, in the same general 
                        location, as determined by the applicable State 
                        agency, with an Energy Star qualified 
                        manufactured home.
                    (C) Single rebate.--A rebate described under 
                paragraph (1) may not be provided to any owner of a 
                manufactured home constructed prior to 1976 that was or 
                is a member of a household for which any other member 
                of the household was provided a rebate pursuant to this 
                section.
                    (D) Eligible households.--To be eligible to receive 
                a rebate described under paragraph (1), an owner of a 
                manufactured home constructed prior to 1976 shall 
                demonstrate to the applicable State agency that the 
                total income of all members the owner's household does 
                not exceed 200 percent of the Federal poverty level for 
                income in the applicable area.
                    (E) Advance availability.--A rebate may be provided 
                under this section in a manner to facilitate the 
                purchase of a new Energy Star qualified manufactured 
                home.
            (4) Rebate limitation.--Rebates provided by States under 
        this section shall not exceed $7,500 per manufactured home from 
        any value derived from the use of emission allowances provided 
        to the State pursuant to section 132.
            (5) Use of state funds.--A State providing rebates under 
        this section may supplement the amount of such rebates under 
        paragraph (4) by any additional amount is from State funds and 
        other sources, including private donations or grants from 
        charitable organizations.
            (6) Coordination with similar programs.--
                    (A) State programs.--A State conducting an existing 
                program that has the purpose of replacing manufactured 
                homes constructed prior to 1976 with Energy Star 
                qualified manufactured homes, may use allowance value 
                provided under section 782 of the Clean Air Act to 
                support such a program, provided such funding does not 
                exceed the rebate limitation amount under paragraph 
                (4).
                    (B) Federal programs.--The Secretary of Energy 
                shall coordinate with and seek to achieve the purpose 
                of this section through similar Federal programs 
                including--
                            (i) the Weatherization Assistance Program 
                        under part A of title IV of the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.); and
                            (ii) the program under part D of title III 
                        of the Energy Policy and Conservation Act (42 
                        U.S.C. 6321 et seq.).
                    (C) Coordination with other state agencies.--A 
                State agency using allowance value to administer the 
                program under this section may coordinate its efforts, 
                and share funds for administration, with other State 
                agencies involved in low-income housing programs.
            (7) Administrative expenses.--A State using allowance value 
        under this section may expend not more than 10 percent of such 
        value for administrative expenses related to this program.

SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.

    (a) Establishment.--
            (1) Purpose.--The Administrator shall establish a building 
        energy performance labeling program with broad applicability to 
        the residential and commercial markets to enable and encourage 
        knowledge about building energy performance by owners and 
        occupants and to inform efforts to reduce energy consumption 
        nationwide.
            (2) Components.--In developing such program, the 
        Administrator shall--
                    (A) consider existing programs, such as 
                Environmental Protection Agency's Energy Star program, 
                the Home Energy Rating System (HERS) Index, and 
                programs at the Department of Energy;
                    (B) support the development of model performance 
                labels for residential and commercial buildings; and
                    (C) utilize incentives and other means to spur use 
                of energy performance labeling of public and private 
                sector buildings nationwide.
    (b) Data Assessment for Building Energy Performance.--
            (1) Initial report.--Not later than 90 days after the date 
        of enactment of this Act, the Administrator shall provide to 
        Congress, as well as to the Secretary of Energy and the Office 
        of Management and Budget, a report identifying--
                    (A) all principal building types for which 
                statistically significant energy performance data 
                exists to serve as the basis of measurement protocols 
                and labeling requirements for achieved building energy 
                performance; and
                    (B) those building types for which additional data 
                are required to enable the development of such 
                protocols and requirements.
            (2) Additional reports.--Additional updated reports shall 
        be provided under this subsection as often as The Administrator 
        considers practicable, but not less than every 2 years.
    (c) Building Data Acquisition.--
            (1) Resource requirements.--For all principal building 
        types identified under subsection (b), the Secretary of Energy, 
        not later than 90 days after a report by the Administrator 
        under subsection (b), shall provide to Congress, the 
        Administrator, and the Office of Management and Budget a 
        statement of additional resources needed, if any, to fully 
        develop the relevant data, as well as the anticipated timeline 
        for data development.
            (2) Consultation.--The Secretary of Energy shall consult 
        with the Administrator concerning the Administrator's ability 
        to use data series for these additional building types to 
        support the achieved performance component in the labeling 
        program.
            (3) Improvements to building energy consumption 
        databases.--
                    (A) Commercial database.--The Secretary of Energy 
                shall support improvements to the Commercial Buildings 
                Energy Consumption Survey (CBECS) as authorized by 
                section 205(k) of the Department of Energy Organization 
                Act (42 U.S.C. 7135(k))--
                            (i) to enable complete and robust data for 
                        the actual energy performance of principal 
                        building types currently covered by survey;
                            (ii) to cover additional building types as 
                        identified by the Administrator under 
                        subsection (b)(1)(B), to enable the development 
                        of achieved performance measurement protocols 
                        are developed for at least 90 percent of all 
                        major commercial building types within 5 years 
                        after the date of enactment of this Act; and
                            (iii) to include third-party audits of 
                        random data samplings to ensure the quality and 
                        accuracy of survey information.
                    (B) Residential databases.--The Administrator, in 
                consultation with the Energy Information Administration 
                and the Secretary of Energy, shall support improvements 
                to the Residential Energy Consumption Survey (RECS) as 
                authorized by section 205(k) of the Department of 
                Energy Organization Act (42 U.S.C. 7135(k)), or such 
                other residential energy performance databases as the 
                Administrator considers appropriate, to aid the 
                development of achieved performance measurement 
                protocols for residential building energy use for at 
                least 90 percent of the residential market within 5 
                years after the date of enactment of this Act.
                    (C) Consultation.--The Secretary of Energy and the 
                Administrator shall consult with public, private, and 
                nonprofit sector representatives from the building 
                industry and real estate industry to assist in the 
                evaluation and improvement of building energy 
                performance databases and labeling programs.
    (d) Identification of Measurement Protocols for Achieved 
Performance.--
            (1) Proposed protocols and requirements.--At the earliest 
        practicable date, but not later than 1 year after identifying a 
        building type under subsection (b)(1)(A), the Administrator 
        shall propose a measurement protocol for that building type and 
        a requirement detailing how to use that protocol in completing 
        applicable commercial or residential performance labels created 
        pursuant to this section.
            (2) Final rule.--After providing for notice and comment, 
        the Administrator shall publish a final rule containing a 
        measurement protocol and the corresponding requirements for 
        applying that protocol. Such a rule--
                    (A) shall define the minimum period for measurement 
                of energy use by buildings of that type and other 
                details for determining achieved performance, to 
                include leased buildings or parts thereof;
                    (B) shall identify necessary data collection and 
                record retention requirements; and
                    (C) may specify transition rules and exemptions for 
                classes of buildings within the building type.
    (e) Procedures for Evaluating Designed Performance.--The 
Administrator shall develop protocols for evaluating the designed 
performance of individual building types. The Administrator may conduct 
such feasibility studies and demonstration projects as are necessary to 
evaluate the sufficiency of proposed protocols for designed 
performance.
    (f) Creation of Building Energy Performance Labeling Program.--
            (1) Model label.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall propose a model 
        building energy label that provides a format--
                    (A) to display achieved performance and designed 
                performance data;
                    (B) that may be tailored for residential and 
                commercial buildings, and for single-occupancy and 
                multitenanted buildings; and
                    (C) to display other appropriate elements 
                identified during the development of measurement 
                protocols under subsections (d) and (e).
            (2) Inclusions.--Nothing in this section shall require the 
        inclusion on such a label of designed performance data where 
        impracticable or not cost effective, or to preclude the display 
        of both achieved performance and designed performance data for 
        a particular building where both such measures are available, 
        practicable, and cost effective.
            (3) Existing programs.--In developing the model label, the 
        Administrator shall consider existing programs, including--
                    (A) the Environmental Protection Agency's Energy 
                Star Portfolio Manager program and the California HERS 
                II Program Custom Approach for the achieved performance 
                component of the label;
                    (B) the Home Energy Rating System (HERS) Index 
                system for the designed performance component of the 
                label; and
                    (C) other Federal and State programs, including the 
                Department of Energy's related programs on building 
                technologies and those of the Federal Energy Management 
                Program.
            (4) Final rule.--After providing for notice and comment, 
        the Administrator shall publish a final rule containing the 
        label applicable to covered building types.
    (g) Demonstration Projects for Labeling Program.--
            (1) In general.--The Administrator shall conduct building 
        energy performance labeling demonstration projects for 
        different building types--
                    (A) to ensure the sufficiency of the current 
                Commercial Buildings Energy Consumption Survey and 
                other data to serve as the basis for new measurement 
                protocols for the achieved performance component of the 
                building energy performance labeling program;
                    (B) to inform the development of measurement 
                protocols for building types not currently covered by 
                the Commercial Buildings Energy Consumption Survey; and
                    (C) to identify any additional information that 
                needs to be developed to ensure effective use of the 
                model label.
            (2) Participation.--Such demonstration projects shall 
        include participation of--
                    (A) buildings from diverse geographical and climate 
                regions;
                    (B) buildings in both urban and rural areas;
                    (C) single-family residential buildings;
                    (D) multihousing residential buildings with more 
                than 50 units, including at least one project that 
                provides affordable housing to individuals of diverse 
                incomes;
                    (E) single-occupant commercial buildings larger 
                than 30,000 square feet;
                    (F) multitenanted commercial buildings larger than 
                50,000 square feet; and
                    (G) buildings from both the public and private 
                sectors.
            (3) Priority.--Priority in the selection of demonstration 
        projects shall be given to projects that facilitate large-scale 
        implementation of the labeling program for samples of buildings 
        across neighborhoods, geographic regions, cities, or States.
            (4) Findings.--The Administrator shall report any findings 
        from demonstration projects under this subsection, including an 
        identification of any areas of needed data improvement, to the 
        Department of Energy's Energy Information Administration and 
        Building Technologies Program.
            (5) Coordination.--The Administrator and the Secretary of 
        Energy shall coordinate demonstration projects undertaken 
        pursuant to this subsection with those undertaken as part of 
        the Zero-Net-Energy Commercial Buildings Initiative adopted 
        under section 422 of the Energy Independence and Security Act 
        of 2007 (42 U.S.C. 17082).
    (h) Implementation of Labeling Program.--
            (1) In general.--The Administrator, in consultation with 
        the Secretary of Energy, shall work with all State Energy 
        Offices established pursuant to part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) or 
        other State authorities as necessary for the purpose of 
        implementing the labeling program established under this 
        section for commercial and residential buildings.
            (2) Outreach to local authorities.--The Administrator 
        shall, acting in consultation and coordination with the 
        respective States, encourage use of the labeling program by 
        counties and other localities to broaden access to information 
        about building energy use, for example, through disclosure of 
        building label contents in tax, title, and other records those 
        localities maintain. For this purpose, the Administrator shall 
        develop an electronic version of the label and information that 
        can be readily transmitted and read in widely-available 
        computer programs but is protected from unauthorized 
        manipulation.
            (3) Means of implementation.--In adopting the model 
        labeling program established under this section, a State shall 
        seek to ensure that labeled information be made accessible to 
        the public in a manner so that owners, lenders, tenants, 
        occupants, or other relevant parties can utilize it. Such 
        accessibility may be accomplished through--
                    (A) preparation, and public disclosure of the label 
                through filing with tax and title records at the time 
                of--
                            (i) a building audit conducted with support 
                        from Federal or State funds;
                            (ii) a building energy-efficiency retrofit 
                        conducted in response to such an audit;
                            (iii) a final inspection of major 
                        renovations or additions made to a building in 
                        accordance with a building permit issued by a 
                        local government entity;
                            (iv) a sale that is recorded for title and 
                        tax purposes consistent with paragraph (8);
                            (v) a new lien recorded on the property for 
                        more than a set percentage of the assessed 
                        value of the property, if that lien reflects 
                        public financial assistance for energy-related 
                        improvements to that building; or
                            (vi) a change in ownership or operation of 
                        the building for purposes of utility billing; 
                        or
                    (B) other appropriate means.
            (4) State implementation of program.--
                    (A) Eligibility.--A State may become eligible to 
                utilize allowance value to implement this program by--
                            (i) adopting by statute or regulation a 
                        requirement that buildings be assessed and 
                        labeled, consistent with the labeling 
                        requirements of the program established under 
                        this section; or
                            (ii) adopting a plan to implement a model 
                        labeling program consistent with this section 
                        within 1 year of enactment of this Act, 
                        including the establishment of that program 
                        within 3 years after the date of enactment of 
                        this Act, and demonstrating continuous progress 
                        under that plan.
                    (B) Use of allowances.--Direct Federal support for 
                the program established in this section is provided 
                through the emission allowances allocated to the 
                States' SEED Accounts pursuant to section 132 of this 
                Act. To the extent that a State provides allowances to 
                local governments within the State to implement this 
                program, that shall be deemed a distribution of such 
                allowances to units of local government pursuant to 
                subsection (c)(1) of that section.
            (5) Guidance.--The Administrator may create or identify 
        model programs and resources to provide guidance to offer to 
        States and localities for creating labeling programs consistent 
        with the model program established under this section.
            (6) Progress report.--The Administrator, in consultation 
        with the Secretary of Energy, shall provide a progress report 
        to Congress not later than 3 years after the date of enactment 
        of this Act that--
                    (A) evaluates the effectiveness of efforts to 
                advance use of the model labeling program by States and 
                localities;
                    (B) recommends any legislative changes necessary to 
                broaden the use of the model labeling program; and
                    (C) identifies any changes to broaden the use of 
                the model labeling program that the Administrator has 
                made or intends to make that do not require additional 
                legislative authority.
            (7) State information.--The Administrator may require 
        States to report to the Administrator information that the 
        Administrator requires to provide the report required under 
        paragraph (6).
            (8) Prevention of disruption of sales transactions.--No 
        State shall implement a new labeling program pursuant to this 
        section in a manner that requires the labeling of a building to 
        occur after a contract has been executed for the sale of that 
        building and before the sales transaction is completed.
    (i) Implementation of Labeling Program in Federal Buildings.--
            (1) Use of labeling program.--The Secretary of Energy and 
        the Administrator shall use the labeling program established 
        under this section to evaluate energy performance in the 
        facilities of the Department of Energy and the Environmental 
        Protection Agency, respectively, to the extent practicable, and 
        shall encourage and support implementation efforts in other 
        Federal agencies.
            (2) Annual progress report.--The Secretary of Energy and 
        Administrator shall provide an annual progress report to 
        Congress and the Office of Management and Budget detailing 
        efforts to implement this subsection, as well as any best 
        practices or needed resources identified as a result of such 
        efforts.
    (j) Public Outreach.--The Secretary of Energy and the 
Administrator, in consultation with nonprofit and industry stakeholders 
with specialized expertise, and in conjunction with other energy 
efficiency public awareness efforts, shall establish a business and 
consumer education program to increase awareness about the importance 
of building energy efficiency and to facilitate widespread use of the 
labeling program established under this section.
    (k) Definitions.--In this section:
            (1) Building type.--The term ``building type'' means a 
        grouping of buildings as identified by their principal building 
        activities, or as grouped by their use, including office 
        buildings, laboratories, libraries, data centers, retail 
        establishments, hotels, warehouses, and educational buildings.
            (2) Measurement protocol.--The term ``measurement 
        protocol'' means the methodology, prescribed by the 
        Administrator, for defining a benchmark for building energy 
        performance for a specific building type and for measuring that 
        performance against the benchmark.
            (3) Achieved performance.--The term ``achieved 
        performance'' means the actual energy consumption of a building 
        as compared to a baseline building of the same type and size, 
        determined by actual consumption data normalized for 
        appropriate variables.
            (4) Designed performance.--The term ``designed 
        performance'' means the energy consumption performance a 
        building would achieve if operated consistent with its design 
        intent for building energy use, utilizing a standardized set of 
        operational conditions informed by data collected or confirmed 
        during an energy audit.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) to the Administrator $50,000,000 for implementation of 
        this section for each fiscal year from 2010 through 2020; and
            (2) to the Secretary of Energy $20,000,000 for 
        implementation of this section for fiscal year 2010 and 
        $10,000,000 for fiscal years 2011 through 2020.
    (m) New Construction.--This section shall apply only to 
construction beginning after the date of enactment of this Act.

SEC. 205. TREE PLANTING PROGRAMS.

    (a) Findings.--The Congress finds that--
            (1) the utility sector is the largest single source of 
        greenhouse gas emissions in the United States today, producing 
        approximately one-third of the country's emissions;
            (2) heating and cooling homes accounts for nearly 60 
        percent of residential electricity usage in the United States;
            (3) shade trees planted in strategic locations can reduce 
        residential cooling costs by as much as 30 percent;
            (4) shade trees have significant clean-air benefits 
        associated with them;
            (5) every 100 healthy large trees removes about 300 pounds 
        of air pollution (including particulate matter and ozone) and 
        about 15 tons of carbon dioxide from the air each year;
            (6) tree cover on private property and on newly-developed 
        land has declined since the 1970s, even while emissions from 
        transportation and industry have been rising; and
            (7) in over a dozen test cities across the United States, 
        increasing urban tree cover has generated between two and five 
        dollars in savings for every dollar invested in such tree 
        planting.
    (b) Definitions.--As used in this section:
            (1) The term ``Secretary'' refers to the Secretary of 
        Energy.
            (2) The term ``retail power provider'' means any entity 
        authorized under applicable State or Federal law to generate, 
        distribute, or provide retail electricity, natural gas, or fuel 
        oil service.
            (3) The term ``tree-planting organization'' means any 
        nonprofit or not-for-profit group which exists, in whole or in 
        part, to--
                    (A) expand urban and residential tree cover;
                    (B) distribute trees for planting;
                    (C) increase awareness of the environmental and 
                energy-related benefits of trees;
                    (D) educate the public about proper tree planting, 
                care, and maintenance strategies; or
                    (E) carry out any combination of the foregoing 
                activities.
            (4) The term ``tree-siting guidelines'' means a 
        comprehensive list of science-based measurements outlining the 
        species and minimum distance required between trees planted 
        pursuant to this section, in addition to the minimum required 
        distance to be maintained between such trees and--
                    (A) building foundations;
                    (B) air conditioning units;
                    (C) driveways and walkways;
                    (D) property fences;
                    (E) preexisting utility infrastructure;
                    (F) septic systems;
                    (G) swimming pools; and
                    (H) other infrastructure as deemed appropriate.
            (5) The terms ``small office'', ``small office buildings'', 
        and ``small office settings'' means nonresidential buildings or 
        structures zoned for business purposes that are 20,000 square 
        feet or less in total area.
    (c) Purposes.--The purpose of this section is to establish a grant 
program to assist retail power providers with the establishment and 
operation of targeted tree-planting programs in residential and small 
office settings, for the following purposes:
            (1) Reducing the peak-load demand for electricity from 
        residences and small office buildings during the summer months 
        through direct shading of buildings provided by strategically 
        planted trees.
            (2) Reducing wintertime demand for energy from residences 
        and small office buildings by blocking cold winds from reaching 
        such structures, which lowers interior temperatures and drives 
        heating demand.
            (3) Protecting public health by removing harmful pollution 
        from the air.
            (4) Utilizing the natural photosynthetic and transpiration 
        process of trees to lower ambient temperatures and absorb 
        carbon dioxide, thus mitigating the effects of climate change.
            (5) Lowering electric bills for residential and small 
        office ratepayers by limiting electricity consumption without 
        reducing benefits.
            (6) Relieving financial and demand pressure on retail power 
        providers that stems from large peak-load energy demand.
            (7) Protecting water quality and public health by reducing 
        stormwater runoff and keeping harmful pollutants from entering 
        waterways.
            (8) Ensuring that trees are planted in locations that limit 
        the amount of public money needed to maintain public and 
        electric infrastructure.
    (d) General Authority.--
            (1) Assistance.--The Secretary is authorized to provide 
        financial, technical, and related assistance to retail power 
        providers to assist with the establishment of new, or continued 
        operation of existing, targeted tree-planting programs for 
        residences and small office buildings.
            (2) Public recognition initiative.--In carrying out the 
        authority provided under this section, the Secretary shall also 
        create a national public recognition initiative to encourage 
        participation in tree-planting programs by retail power 
        providers.
            (3) Eligibility.--Only those programs which utilize 
        targeted, strategic tree-siting guidelines to plant trees in 
        relation to building location, sunlight, and prevailing wind 
        direction shall be eligible for assistance under this section.
            (4) Requirements.--In order to qualify for assistance under 
        this section, a tree-planting program shall meet each of the 
        following requirements:
                    (A) The program shall provide free or discounted 
                shade-providing or wind-reducing trees to residential 
                and small office consumers interested in lowering their 
                home energy costs.
                    (B) The program shall optimize the electricity-
                consumption reduction benefit of each tree by planting 
                in strategic locations around a given residence or 
                small office.
                    (C) The program shall either--
                            (i) provide maximum amounts of shade during 
                        summer intervals when residences and small 
                        offices are exposed to the most sun intensity; 
                        or
                            (ii) provide maximum amounts of wind 
                        protection during fall and winter intervals 
                        when residences and small offices are exposed 
                        to the most wind intensity.
                    (D) The program shall use the best available 
                science to create tree siting guidelines which dictate 
                where the optimum tree species are best planted in 
                locations that achieve maximum reductions in consumer 
                energy demand while causing the least disruption to 
                public infrastructure, considering overhead and 
                underground facilities.
                    (E) The program shall receive certification from 
                the Secretary that it is designed to achieve the goals 
                set forth in subparagraphs (A) through (D). In 
                designating criteria for such certification, the 
                Secretary shall collaborate with the United States 
                Forest Service's Urban and Community Forestry Program 
                to ensure that certification requirements are 
                consistent with such above goals.
            (5) New program funding share.--The Secretary shall ensure 
        that no less than 30 percent of the funds made available under 
        this section are distributed to retail power providers which--
                    (A) have not previously established or operated 
                qualified tree-planting programs; or
                    (B) are operating qualified tree-planting programs 
                which were established no more than 3 years prior to 
                the date of enactment of this section.
    (e) Agreements Between Electricity Providers and Tree-planting 
Organizations.--
            (1) Grant authorization.--In providing assistance under 
        this section, the Secretary is authorized to award grants only 
        to retail power providers that have entered into binding legal 
        agreements with nonprofit tree-planting organizations.
            (2) Conditions of agreement.--Those agreements between 
        retail power providers and tree-planting organizations shall 
        set forth conditions under which nonprofit tree-planting 
        organizations shall provide targeted tree-planting programs 
        which may require these organizations to--
                    (A) participate in local technical advisory 
                committees responsible for drafting general tree-siting 
                guidelines and choosing the most effective species of 
                trees to plant in given locations;
                    (B) coordinate volunteer recruitment to assist with 
                the physical act of planting trees in residential 
                locations;
                    (C) undertake public awareness campaigns to educate 
                local residents about the benefits, cost savings, and 
                availability of free shade trees;
                    (D) establish education and information campaigns 
                to encourage recipients to maintain their shade trees 
                over the long term;
                    (E) serve as the point of contact for existing and 
                potential residential participants who have questions 
                or concerns regarding the tree-planting program;
                    (F) require tree recipients to sign agreements 
                committing to voluntary stewardship and care of 
                provided trees;
                    (G) monitor and report on the survival, growth, 
                overall health, and estimated energy savings of 
                provided trees up until the end of their establishment 
                period which shall be no less than 5 years; and
                    (H) ensure that trees planted near existing power 
                lines will not interfere with energized electricity 
                distribution lines when mature, and that no new trees 
                will be planted under or adjacent to high-voltage 
                electric transmission lines without prior consultation 
                with the applicable retail power provider receiving 
                assistance under this section.
            (3) Lack of nonprofit organization.--If qualified nonprofit 
        or not-for-profit tree planting organizations do not exist or 
        operate within areas served by retail power providers applying 
        for assistance under this section, the requirements of this 
        section shall apply to binding legal agreements entered into by 
        such retail power providers and one of the following entities:
                    (A) Local municipal governments with jurisdiction 
                over the urban or suburban forest.
                    (B) The State Forester for the State in which the 
                tree planting program will operate.
                    (C) The United States Forest Service's Urban and 
                Community Forestry representative for the State in 
                which the tree-planting program will operate.
                    (D) A landscaping services company that is--
                            (i) identified in consultation with a 
                        national or State nonprofit or not-for-profit 
                        tree-planting organization;
                            (ii) licensed to operate in the State in 
                        which the tree-planting program will operate; 
                        and
                            (iii) a business as defined by the United 
                        States Census Bureau's 2007 North American 
                        Industry Classification System Code 561730.
    (f) Technical Advisory Committees.--
            (1) Description.--In order to qualify for assistance under 
        this section, the retail power provider shall establish and 
        consult with a local technical advisory committee which shall 
        provide advice and consultation to the program, and may--
                    (A) design and adopt an approved plant list that 
                emphasizes the use of hardy, noninvasive tree species 
                and, where geographically appropriate, the use of 
                native, or site-adapted, or low water-use shade trees;
                    (B) design and adopt planting, installation, and 
                maintenance specifications and create a process for 
                inspection and quality control;
                    (C) ensure that tree recipients are educated to 
                care for and maintain their trees over the long term;
                    (D) help the public become more engaged and 
                educated in the planting and care of shade trees;
                    (E) prioritize which sites receive trees, giving 
                preference to locations with the most potential for 
                energy conservation and secondary preference to areas 
                where the average annual income is below the regional 
                median; and
                    (F) assist with monitoring and collection of data 
                on tree health, tree survival, and energy conservation 
                benefits generated under this section.
            (2) Compensation.--Individuals serving on local technical 
        advisory committees shall not receive compensation for their 
        service.
            (3) Composition.--Local technical advisory committees shall 
        be composed of representatives from public, private, and 
        nongovernmental agencies with expertise in demand-side energy 
        efficiency management, urban forestry, or arboriculture, and 
        shall be composed of the following:
                    (A) Up to 4 persons, but no less than one person, 
                representing the retail power provider receiving 
                assistance under this section.
                    (B) Up to 4 persons, but no less than one person, 
                representing the local tree-planting organization which 
                will partner with the retail power provider to carry 
                out this section.
                    (C) Up to 3 persons representing local nonprofit 
                conservation or environmental organizations. Preference 
                shall be given to those entities which are organized 
                under section 501(c)(3) of the Internal Revenue Code of 
                1986, and which have demonstrated expertise engaging 
                the public in energy conservation, energy efficiency, 
                or green building practices or a combination thereof, 
                such that no single organization is represented by more 
                than one individual under this paragraph.
                    (D) Up to 2 persons representing a local affordable 
                housing agency, affordable housing builder, or 
                community development corporation.
                    (E) Up to 3, but no less than one, persons 
                representing local city or county government for each 
                municipality where a shade tree-planting program will 
                take place; at least one of these representatives shall 
                be the city or county forester, city or county 
                arborist, or functional equivalent.
                    (F) Up to one person representing the local 
                government agency responsible for management of roads, 
                sewers, and infrastructure, including but not limited 
                to public works departments, transportation agencies, 
                or equivalents.
                    (G) Up to 3 persons representing the nursery and 
                landscaping industry.
                    (H) Up to 3 persons representing the research 
                community or academia with expertise in natural 
                resources or energy management issues.
            (4) Chairperson.--Each local technical advisory committee 
        shall elect a chairperson to preside over Committee meetings, 
        act as a liaison to governmental and other outside entities, 
        and direct the general operation of the committee; only 
        committee representatives from paragraph (3)(A) or paragraph 
        (3)(B) of this subsection shall be eligible to act as local 
        technical advisory committee chairpersons.
            (5) Credentials.--At least one of the members of each local 
        technical advisory committee shall be certified with one or 
        more of the following credentials: International Society of 
        Arboriculture; Certified Arborist, ISA; Certified Arborist 
        Municipal Specialist, ISA; Certified Arborist Utility 
        Specialist, ISA; Board Certified Master Arborist; or Registered 
        Landscape Architect recommended by the American Society of 
        Landscape Architects.
    (g) Cost-share Program.--
            (1) Federal share.--The Federal share of support for 
        projects funded under this section shall not exceed 50 percent 
        of the cost of such project and shall be provided on a matching 
        basis.
            (2) Non-federal share.--The non-Federal share of such costs 
        may be paid or contributed by any governmental or 
        nongovernmental entity other than from funds derived directly 
        or indirectly from an agency or instrumentality of the United 
        States.
    (h) Rulemaking.--
            (1) Rulemaking period.--The Secretary shall be authorized 
        to solicit comments and initiate a rulemaking period that shall 
        last no more than 6 months after the date of enactment of this 
        section.
            (2) Competitive grant rule.--At the conclusion of the 
        rulemaking period under paragraph (1), the Secretary shall 
        promulgate a rule governing a public, competitive grants 
        process through which retail power providers may apply for 
        Federal support under this section.
    (i) Nonduplicity.--Nothing in this section shall be construed to 
supersede, duplicate, cancel, or negate the programs or authorities 
provided under section 9 of the Cooperative Forestry Assistance Act of 
1978 (92 Stat. 369; Public Law 95-313; 16 U.S.C. 2105).
    (j) Authorization of Appropriations.--There are hereby authorized 
to be appropriated such sums as may be necessary for the implementation 
of this section.

SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

    Section 453(c)(1) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17112(c)(1)) is amended by inserting ``but not later 
than 2 years after the date of enactment of this Act'' after 
``described in subsection (b)''.

SEC. 207. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

    (a) Grant Program Authorized.--
            (1) Grant authorization.--The Secretary of Housing and 
        Urban Development shall to the extent amounts are made 
        available for grants under this section provide grants to local 
        building code enforcement departments.
            (2) Competitive awards.--The Secretary shall award grants 
        under paragraph (1) on a competitive basis taking into 
        consideration the following:
                    (A) The financial need of each building code 
                enforcement department.
                    (B) The benefit to the jurisdiction of having an 
                adequately funded building code enforcement department.
                    (C) The demonstrated ability of each building code 
                enforcement department to work cooperatively with other 
                local code enforcement offices, health departments, and 
                local prosecutorial agencies.
            (3) Maximum amount.--The maximum amount of any grant 
        awarded under this subsection shall not exceed $1,000,000.
            (4) Coordination.--The Secretary of Housing and Urban 
        Development shall coordinate with the Secretary of Energy to 
        ensure that any unnecessarily duplicative funding through 
        grants under this section of activities otherwise funded 
        through the Department of Energy is minimized or eliminated.
    (b) Required Elements in Grant Proposals.--In order to be eligible 
for a grant under subsection (a), a building code enforcement 
department of a jurisdiction shall submit to the Secretary the 
following:
            (1) A demonstration of the jurisdiction's needs in 
        executing building code enforcement administration.
            (2) A plan for the use of any funds received from a grant 
        under this section that addresses the needs discussed in 
        paragraph (1) and that is consistent with the authorized uses 
        established in subsection (c).
            (3) A plan for local governmental actions to be taken to 
        establish and sustain local building code enforcement 
        administration functions, without continuing Federal support, 
        at a level at least equivalent to that proposed in the grant 
        application.
            (4) A plan to create and maintain a program of public 
        outreach that includes a regularly updated and readily 
        accessible means of public communication, interaction, and 
        reporting regarding the services and work of the building code 
        enforcement department to be supported by the grant.
            (5) A plan for ensuring the timely and effective 
        administrative enforcement of building safety and fire 
        prevention violations.
    (c) Use of Funds; Matching Funds.--
            (1) Authorized uses.--Amounts from grants awarded under 
        subsection (a) may be used by the grant recipient to supplement 
        existing State or local funding for administration of building 
        code enforcement, or to supplement allowance value received 
        pursuant to this Act for implementation and enforcement of 
        energy efficiency building codes. Such amounts may be used to 
        increase staffing, provide staff training, increase staff 
        competence and professional qualifications, or support 
        individual certification or departmental accreditation, or for 
        capital expenditures specifically dedicated to the 
        administration of the building code enforcement department.
            (2) Additional requirement.--Each building code enforcement 
        department receiving a grant under subsection (a) shall empanel 
        a code administration and enforcement team consisting of at 
        least 1 full-time building code enforcement officer, a city 
        planner, and a health planner or similar officer.
            (3) Matching funds required.--
                    (A) In general.--To be eligible to receive a grant 
                under this section, a building code enforcement 
                department shall provide matching, non-Federal funds in 
                the following amount:
                            (i) In the case of a building code 
                        enforcement department serving an area with a 
                        population of more than 50,000, an amount equal 
                        to not less than 50 percent of the total amount 
                        of any grant to be awarded under this section.
                            (ii) In the case of a building code 
                        enforcement department serving an area with a 
                        population of between 20,001 and 50,000, an 
                        amount equal to not less than 25 percent of the 
                        total amount of any grant to be awarded under 
                        this section.
                            (iii) In the case of a building code 
                        enforcement department serving an area with a 
                        population of less than 20,000, an amount equal 
                        to not less than 12.5 percent of the total 
                        amount of any grant to be awarded under this 
                        section.
                    (B) Economic distress.--
                            (i) In general.--The Secretary may waive 
                        the matching fund requirements under 
                        subparagraph (A), and institute, by regulation, 
                        new matching fund requirements based upon the 
                        level of economic distress of the jurisdiction 
                        in which the local building code enforcement 
                        department seeking such grant is located.
                            (ii) Content of regulations.--Any 
                        regulations instituted under clause (i) shall 
                        include--
                                    (I) a method that allows for a 
                                comparison of the degree of economic 
                                distress among the local jurisdictions 
                                of grant applicants, as measured by the 
                                differences in the extent of growth 
                                lag, the extent of poverty, and the 
                                adjusted age of housing in such 
                                jurisdiction; and
                                    (II) any other factor determined to 
                                be relevant by the Secretary in 
                                assessing the comparative degree of 
                                economic distress among such 
                                jurisdictions.
            (4) In-kind contributions.--In determining the non-Federal 
        share required to be provided under paragraph (3), the 
        Secretary shall consider in-kind contributions, not to exceed 
        50 percent of the amount that the department contributes in 
        non-Federal funds.
            (5) Waiver of matching requirement.--The Secretary shall 
        waive the matching fund requirements under paragraph (3) for 
        any recipient jurisdiction that has dedicated all building code 
        permitting fees to the conduct of local building code 
        enforcement.
    (d) Evaluation and Report.--
            (1) In general.--Grant recipients under this section 
        shall--
                    (A) be obligated to fully account and report for 
                the use of all grants funds; and
                    (B) provide a report to the Secretary on the 
                effectiveness of the program undertaken by the grantee 
                and any other criteria requested by the Secretary for 
                the purpose of indicating the effectiveness of, and 
                ideas for, refinement of the grant program.
            (2) Report.--The report required under paragraph (1)(B) 
        shall include a discussion of--
                    (A) the specific capabilities and functions in 
                local building code enforcement administration that 
                were addressed using funds received under this section;
                    (B) the lessons learned in carrying out the plans 
                supported by the grant; and
                    (C) the manner in which the programs supported by 
                the grant are to be maintained by the grantee.
            (3) Content of reports.--The Secretary shall--
                    (A) require each recipient of a grant under this 
                section to file interim and final reports under 
                paragraph (2) to ensure that grant funds are being used 
                as intended and to measure the effectiveness and 
                benefits of the grant program; and
                    (B) develop and maintain a means whereby the public 
                can access such reports, at no cost, via the Internet.
    (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Building code enforcement.--The term ``building code 
        enforcement'' means the enforcement of any code, adopted by a 
        State or local government, that regulates the construction of 
        buildings and facilities to mitigate hazards to life or 
        property. Such term includes building codes, electrical codes, 
        energy codes, fire codes, fuel gas codes, mechanical codes, and 
        plumbing codes.
            (2) Building code enforcement department.--The term 
        ``building code enforcement department'' means an inspection or 
        enforcement agency of a jurisdiction that is responsible for 
        conducting building code enforcement.
            (3) Jurisdiction.--The term ``jurisdiction'' means a city, 
        county, parish, city and county authority, or city and parish 
        authority having local authority to enforce building codes and 
        regulations and to collect fees for building permits.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        $20,000,000 for each of fiscal years 2010 through 2014 to the 
        Secretary of Housing and Urban Development to carry out the 
        provisions of this section.
            (2) Reservation.--From the amount made available under 
        paragraph (1), the Secretary may reserve not more than 5 
        percent for administrative costs.
            (3) Availability.--Any funds appropriated pursuant to 
        paragraph (1) shall remain available until expended.

SEC. 208. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT 
              OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.

    Section 104 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304) is amended by adding at the end the following new 
subsection:
    ``(n) Requirements for Building Permits Regarding Solar Energy 
Systems.--
            ``(1) In general.--A grant under section 106 for a fiscal 
        year may be made only if the grantee certifies to the Secretary 
        that--
                    ``(A) in the case of a grant under section 106(a) 
                for any Indian tribe or insular area, during such 
                fiscal year the cost of any permit or license, for 
                construction or installation of any solar energy system 
                for any structure, that is required by the tribe or 
                insular area or by any other unit of general local 
                government or other political subdivision of such tribe 
                or insular area, complies with paragraph (2);
                    ``(B) in the case of a grant under section 106(b) 
                for any metropolitan city or urban county, during such 
                fiscal year the cost of any permit or license, for 
                construction or installation of any solar energy system 
                for any structure, that is required by the metropolitan 
                city or urban county, or by any other political 
                subdivision of such city or county, complies with 
                paragraph (2); and
                    ``(C) in the case of a grant under section 106(d) 
                for any State, during such fiscal year the cost of any 
                permit or license, for construction or installation of 
                any solar energy system for any structure, that is 
                required by the State, or by any other unit of general 
                local government within any nonentitlement area of such 
                State, or other political subdivision within any 
                nonentitlement area of such State or such a unit of 
                general local government, complies with paragraph (2).
            ``(2) Limitation on cost.--The cost of permit or license 
        for construction or installation of any solar energy system 
        complies with this paragraph only if such cost does not exceed 
        the following amount:
                    ``(A) Residential structures.--In the case of a 
                structure primarily for residential use, $500.
                    ``(B) Nonresidential structures.--In the case of a 
                structure primarily for nonresidential use, 1.0 percent 
                of the total cost of the installation or construction 
                of the solar energy system, but not in excess of 
                $10,000.
            ``(3) Noncompliance.--If the Secretary determines that a 
        grantee of a grant made under section 106 is not in compliance 
        with a certification under paragraph (1)--
                    ``(A) the Secretary shall notify the grantee of 
                such determination; and
                    ``(B) if the grantee has not corrected such 
                noncompliance before the expiration of the 6-month 
                period beginning upon notification under subparagraph 
                (A), such grantee shall not be eligible for 5 percent 
                of any amounts awarded under a grant under section 106 
                for the first fiscal year that commences after the 
                expiration of such 6-month period.
            ``(4) Solar energy system.--For purposes of this 
        subsection, the term `solar energy system' means, with respect 
        to a structure, equipment that uses solar energy to generate 
        electricity for, or to heat or cool (or provide hot water for 
        use in), such structure.''.

SEC. 209. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF 
              SOLAR ENERGY SYSTEM.

    (a) Regulations.--Within 180 days after the enactment of this Act, 
the Secretary of Housing and Urban Development, in consultation with 
the Secretary of Energy, shall issue regulations--
            (1) to prohibit any private covenant, contract provision, 
        lease provision, homeowners' association rule or bylaw, or 
        similar restriction, that impairs the ability of the owner or 
        lessee of any residential structure designed for occupancy by 1 
        family to install, construct, maintain, or use a solar energy 
        system on such residential property; and
            (2) to require that whenever any such covenant, provision, 
        rule or bylaw, or restriction requires approval for the 
        installation or use of a solar energy system, the application 
        for approval shall be processed and approved by the appropriate 
        approving entity in the same manner as an application for 
        approval of an architectural modification to the property, and 
        shall not be willfully avoided or delayed.
    (b) Contents.--The regulations required under subsection (a) shall 
provide that--
            (1) such a covenant, provision, rule or bylaw, or 
        restriction impairs the installation, construction, 
        maintenance, or use of a solar energy system if it--
                    (A) unreasonably delays or prevents installation, 
                maintenance, or use;
                    (B) unreasonably increases the cost of 
                installation, maintenance, or use; or
                    (C) precludes use of such a system; and
            (2) any fee or cost imposed on the owner or lessee of such 
        a residential structure by such a covenant, provision, rule or 
        bylaw, or restriction shall be considered unreasonable if--
                    (A) such fee or cost is not reasonable in 
                comparison to the cost of the solar energy system or 
                the value of its use; or
                    (B) treatment of solar energy systems by the 
                covenant, provision, rule or bylaw, or restriction is 
                not reasonable in comparison with treatment of 
                comparable systems by the same covenant, provision, 
                rule or bylaw, or restriction.
    (c) Solar Energy System.--For purposes of this section, the term 
``solar energy system'' means, with respect to a structure, equipment 
that uses solar energy to generate electricity for, or to heat or cool 
(or provide hot water for use in), such structure.

     Subtitle B--Lighting and Appliance Energy Efficiency Programs

SEC. 211. LIGHTING EFFICIENCY STANDARDS.

    (a) Outdoor Lighting.--
            (1) Definitions.--
                    (A) Section 340(1) of the Energy Policy and 
                Conservation Act (42 U.S.C. 6311(1)) is amended by 
                striking subparagraph (L) and inserting the following:
                    ``(L) Outdoor luminaires.
                    ``(M) Outdoor high light output lamps.
                    ``(N) Any other type of industrial equipment which 
                the Secretary classifies as covered equipment under 
                section 341(b).''.
                    (B) Section 340 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6311) is amended as adding 
                at the end the following:
            ``(25) The term `luminaire' means a complete lighting unit 
        consisting of one or more light sources and ballast(s), 
        together with parts designed to distribute the light, to 
        position and protect such lamps, and to connect such light 
        sources to the power supply.
            ``(26) The term `outdoor luminaire' means a luminaire that 
        is listed as suitable for wet locations pursuant to 
        Underwriters Laboratories Inc. standard UL 1598 and is labeled 
        as `Suitable for Wet Locations' consistent with section 
        410.4(A) of the National Electrical Code 2005, or is designed 
        for roadway illumination and meets the requirements of Addendum 
        A for IESNA TM-15-07: Backlight, Uplight, and Glare (BUG) 
        Ratings, except for--
                    ``(A) luminaires designed for outdoor video display 
                images that cannot be used in general lighting 
                applications;
                    ``(B) portable luminaires designed for use at 
                construction sites;
                    ``(C) luminaires designed for continuous immersion 
                in swimming pools and other water features;
                    ``(D) seasonal luminaires incorporating solely 
                individual lamps rated at 10 watts or less;
                    ``(E) luminaires designed to be used in emergency 
                conditions that incorporate a means of charging a 
                battery and a device to switch the power supply to 
                emergency lighting loads automatically upon failure of 
                the normal power supply;
                    ``(F) components used for repair of installed 
                luminaries and that meet the requirements of section 
                342(h);
                    ``(G) a luminaire utilizing an electrode-less 
                fluorescent lamp as the light source;
                    ``(H) decorative gas lighting systems;
                    ``(I) luminaires designed explicitly for lighting 
                for theatrical purposes, including performance, stage, 
                film production, and video production;
                    ``(J) luminaires designed as theme elements in 
                theme/amusement parks and that cannot be used in most 
                general lighting applications;
                    ``(K) luminaires designed explicitly for vehicular 
                roadway tunnels designed to comply with ANSI/IESNA RP-
                22-05;
                    ``(L) luminaires designed explicitly for hazardous 
                locations meeting UL Standard 844;
                    ``(M) searchlights;
                    ``(N) luminaires that are designed to be recessed 
                into a building, and that cannot be used in most 
                general lighting applications;
                    ``(O) a luminaire rated only for residential 
                applications utilizing a light source or sources 
                regulated under the amendments made by section 321 of 
                the Energy Independence and Security Act of 2007 and 
                with a light output no greater than 2,600 lumens;
                    ``(P) a residential pole-mounted luminaire that is 
                not rated for commercial use utilizing a light source 
                or sources meeting the efficiency requirements of 
                section 231 of the Energy Independence and Security Act 
                of 2007 and mounted on a post or pole not taller than 
                10.5 feet above ground and with a light output not 
                greater than 2,600 lumens;
                    ``(Q) a residential fixture with E12 (Candelabra) 
                bases that is rated for not more than 300 watts total; 
                or
                    ``(R) a residential fixture with medium screw bases 
                that is rated for not more than 145 watts.
            ``(27) The term `outdoor high light outputlamp' means a 
        lamp that--
                    ``(A) has a rated lumen output not less than 2601 
                lumens;
                    ``(B) is capable of being operated at a voltage not 
                less than 110 volts and not greater than 300 volts, or 
                driven at a constant current of 6.6 amperes;
                    ``(C) is not a Parabolic Aluminized Reflector lamp; 
                and
                    ``(D) is not a J-type double-ended (T-3) halogen 
                quartz lamp, utilizing R-7S bases, that is manufactured 
                before January 1, 2015.
            ``(28) The term `outdoor lighting control' means a device 
        incorporated in a luminaire that receives a signal, from either 
        a sensor (such as an occupancy sensor, motion sensor, or 
        daylight sensor) or an input signal (including analog or 
        digital signals communicated through wired or wireless 
        technology), and can adjust the light level according to the 
        signal.''.
            (2) Standards.--Section 342 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6313) is amended by adding at the 
        end the following:
    ``(g) Outdoor Luminaires.--
            ``(1) Each outdoor luminaire manufactured on or after 
        January 1, 2016, shall--
                    ``(A) have an initial luminaire efficacy of at 
                least 50 lumens per watt; and
                    ``(B) be designed to use a light source with a 
                lumen maintenance, calculated as mean rated lumens 
                divided by initial lumens, of at least 0.6.
            ``(2) Each outdoor luminaire manufactured on or after 
        January 1, 2018, shall--
                    ``(A) have an initial luminaire efficacy of at 
                least 70 lumens per watt; and
                    ``(B) be designed to use a light source with a 
                lumen maintenance, calculated as mean rated lumens 
                divided by initial lumens, of at least 0.6.
            ``(3) In addition to the requirements of paragraphs (1) 
        through (3), each outdoor luminaire manufactured on or after 
        January 1, 2016, shall have the capability of producing at 
        least two different light levels, including 100 percent and 60 
        percent of full lamp output as tested with the maximum rated 
        lamp per UL1598 or the manufacturer's maximum specified for the 
        luminaire under test. Outdoor luminaries used for roadway 
        lighting applications shall be exempt the 2 light level 
        requirement.
            ``(4)(A) Not later than January 1, 2022, the Secretary 
        shall issue a final rule amending the applicable standards 
        established in paragraph (3) if technologically feasible and 
        economically justified.
            ``(B) A final rule issued under subparagraph (A) shall 
        establish efficiency standards at the maximum level that is 
        technically feasible and economically justified, as provided in 
        subsections (o) and (p) of section 325. The Secretary may also, 
        in such rulemaking, amend or discontinue the product exclusions 
        listed in section 340(26)(A) through (P), or amend the lumen 
        maintenance requirements in paragraph (2) if the Secretary 
        determines that such amendments are consistent with the 
        purposes of this Act.
            ``(C) If the Secretary issues a final rule under 
        subparagraph (A) establishing amended standards, the final rule 
        shall provide that the amended standards apply to products 
        manufactured on or after January 1, 2025, or 1 year after the 
        date on which the final amended standard is published, 
        whichever is later.
    ``(h) Outdoor High Light Output Lamps.--Each outdoor high light 
output lamp manufactured on or after January 1, 2017, shall have a 
lighting efficiency of at least 45 lumens per watt.''.
            (3) Test procedures.--Section 343(a) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6314(a)) is amended by adding 
        at the end the following:
            ``(10) Outdoor lighting.--
                    ``(A) With respect to outdoor luminaires and 
                outdoor high light output lamps, the test procedures 
                shall be based upon the test procedures specified in 
                illuminating engineering society procedures LM-79 as of 
                March 1, 2009, and LM-31, and/or other appropriate 
                consensus test procedures developed by the Illuminating 
                Engineering Society or other appropriate consensus 
                standards bodies.
                    ``(B) If illuminating engineering society procedure 
                LM-79 is amended, the Secretary shall amend the test 
                procedures established in subparagraph (A) as necessary 
                to be consistent with the amended LM-79 test procedure, 
                unless the Secretary determines, by rule, published in 
                the Federal Register and supported by clear and 
                convincing evidence, that to do so would not meet the 
                requirements for test procedures under paragraph (2).
                    ``(C) The Secretary may revise the test procedures 
                for outdoor luminaires or outdoor high light output 
                lamps by rule consistent with paragraph (2), and may 
                incorporate as appropriate consensus test procedures 
                developed by the Illuminating Engineering Society or 
                other appropriate consensus standards bodies.''.
            (4) Preemption.--Section 345 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6316) is amended by adding at the 
        end the following:
    ``(i)(1) Except as provided in paragraph (2), section 327 shall 
apply to outdoor luminaires to the same extent and in the same manner 
as the section applies under part B.
    ``(2) Any State standard that is adopted on or before January 1, 
2015, pursuant to a statutory requirement to adopt efficiency standards 
for reducing outdoor lighting energy use enacted prior to January 31, 
2008, shall not be preempted.''.
            (5) Energy efficiency standards for certain luminaires.--
        Not later than 1 year after the date of enactment of this Act, 
        the Secretary of Energy shall, in consultation with the 
        National Electrical Manufacturers Association, collect data for 
        United States sales of luminaires described in section 
        340(26)(H) and (M) of the Energy Policy and Conservation Act, 
        to determine the historical growth rate. If the Secretary finds 
        that the growth in market share of such luminaires exceeds 
        twice the year-to-year rate of the average of the previous 3 
        years, then the Secretary shall within 12 months initiate a 
        rulemaking to determine if such exclusion should be eliminated, 
        if substitute products exist that perform more efficiently and 
        fulfill the performance functions of these luminaires.
    (b) Portable Lighting.--
            (1) Portable light fixtures.--
                    (A) Definitions.--Section 321 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6291) is amended by 
                adding at the end the following:
            ``(67) Art work light fixture.--The term `art work light 
        fixture' means a light fixture designed only to be mounted 
        directly to an art work and for the purpose of illuminating 
        that art work.
            ``(68) LED light engine.--The term `LED light engine' or 
        `LED light engine with integral heat sink' means a subsystem of 
        an LED light fixture that--
                    ``(A) includes 1 or more LED components, 
                including--
                            ``(i) an LED driver power source with 
                        electrical and mechanical interfaces; and
                            ``(ii) an integral heat sink to provide 
                        thermal dissipation; and
                    ``(B) may be designed to accept additional 
                components that provide aesthetic, optical, and 
                environmental control.
            ``(69) LED light fixture.--The term `LED light fixture' 
        means a complete lighting unit consisting of--
                    ``(A) an LED light source with 1 or more LED lamps 
                or LED light engines; and
                    ``(B) parts--
                            ``(i) to distribute the light;
                            ``(ii) to position and protect the light 
                        source; and
                            ``(iii) to connect the light source to 
                        electrical power.
            ``(70) Light fixture.--The term `light fixture' means a 
        product designed to provide light that includes--
                    ``(A) at least 1 lamp socket; and
                    ``(B) parts--
                            ``(i) to distribute the light;
                            ``(ii) position and protect 1 or more 
                        lamps; and
                            ``(iii) to connect 1 or more lamps to a 
                        power supply.
            ``(71) Portable light fixture.--
                    ``(A) In general.--The term `portable light 
                fixture' means a light fixture that has a flexible cord 
                and an attachment plug for connection to a nominal 120-
                volt circuit that--
                            ``(i) allows the user to relocate the 
                        product without any rewiring; and
                            ``(ii) typically can be controlled with a 
                        switch located on the product or the power cord 
                        of the product.
                    ``(B) Exclusions.--The term `portable light 
                fixture' does not include--
                            ``(i) direct plug-in night lights, sun or 
                        heat lamps, medical or dental lights, portable 
                        electric hand lamps, signs or commercial 
                        advertising displays, photographic lamps, 
                        germicidal lamps, or light fixtures for marine 
                        use or for use in hazardous locations (as those 
                        terms are defined in ANSI/NFPA 70 of the 
                        National Electrical Code); or
                            ``(ii) decorative lighting strings, 
                        decorative lighting outfits, or electric 
                        candles or candelabra without lamp shades that 
                        are covered by Underwriter Laboratories (UL) 
                        standard 588, `Seasonal and Holiday Decorative 
                        Products'.''.
                    (B) Coverage.--
                            (i) In general.--Section 322(a) of the 
                        Energy Policy and Conservation Act (42 U.S.C. 
                        6292(a)) is amended--
                                    (I) by redesignating paragraph (20) 
                                as paragraph (24); and
                                    (II) by inserting after paragraph 
                                (19) the following:
            ``(20) Portable light fixtures.''.
                            (ii) Conforming amendments.--Section 325(l) 
                        of the Energy Policy and Conservation Act (42 
                        U.S.C. 6295(l)) is amended by striking 
                        ``paragraph (19)'' each place it appears in 
                        paragraphs (1) and (2) and inserting 
                        ``paragraph (24)''.
                    (C) Test procedures.--Section 323(b) of the Energy 
                Policy and Conservation Act (42 U.S.C. 6293(b)) is 
                amended by adding at the end the following:
            ``(19) LED fixtures and led light engines.--Test procedures 
        for LED fixtures and LED light engines shall be based on 
        Illuminating Engineering Society of North America (IESNA) test 
        procedure LM-79, Approved Method for Electrical and Photometric 
        Testing of Solid-State Lighting Devices, and IESNA-approved 
        test procedure for testing LED light engines.''.
                    (D) Standards.--Section 325 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6295) is amended--
                            (i) by redesignating subsection (ii) as 
                        subsection (oo);
                            (ii) in subsection (oo)(2), as redesignated 
                        in clause (i) of this subparagraph, by striking 
                        ``(hh)'' each place it appears and inserting 
                        ``(mm)''; and
                            (iii) by inserting after subsection (hh) 
                        the following:
    ``(ii) Portable Light Fixtures.--
            ``(1) In general.--Subject to paragraphs (2) and (3), 
        portable light fixtures manufactured on or after January 1, 
        2012, shall meet 1 or more of the following requirements:
                    ``(A) Be a fluorescent light fixture that meets the 
                requirements of the Energy Star Program for Residential 
                Light Fixtures, Version 4.2.
                    ``(B) Be equipped with only 1 or more GU-24 line-
                voltage sockets, not be rated for use with incandescent 
                lamps of any type (as defined in ANSI standards), and 
                meet the requirements of version 4.2 of the Energy Star 
                program for residential light fixtures.
                    ``(C) Be an LED light fixture or a light fixture 
                with an LED light engine and comply with the following 
                minimum requirements:
                            ``(i) Minimum light output: 200 lumens 
                        (initial).
                            ``(ii) Minimum LED light engine efficacy: 
                        40 lumens/watt installed in fixtures that meet 
                        the minimum light fixture efficacy of 29 
                        lumens/watt or, alternatively, a minimum LED 
                        light engine efficacy of 60 lumens/watt for 
                        fixtures that do not meet the minimum light 
                        fixture efficacy of 29 lumens/watt.
                            ``(iii) All portable fixtures shall have a 
                        minimum LED light fixture efficacy of 29 
                        lumens/watt and a minimum LED light engine 
                        efficacy of 60 lumens/watt by January 1, 2016.
                            ``(iv) Color Correlated Temperature (CCT): 
                        2700K through 4000K.
                            ``(v) Minimum Color Rendering Index (CRI): 
                        75.
                            ``(vi) Power factor equal to or greater 
                        than 0.70.
                            ``(vii) Portable luminaries that have 
                        internal power supplies shall have zero standby 
                        power when the luminaire is turned off.
                            ``(viii) LED light sources shall deliver at 
                        least 70 percent of initial lumens for at least 
                        25,000 hours.
                    ``(D)(i) Be equipped with an ANSI-designated E12, 
                E17, or E26 screw-based socket and be prepackaged and 
                sold together with 1 screw-based compact fluorescent 
                lamp or screw-based LED lamp for each screw-based 
                socket on the portable light fixture.
                    ``(ii) The compact fluorescent or LED lamps 
                prepackaged with the light fixture shall be fully 
                compatible with any light fixture controls incorporated 
                into the light fixture (for example, light fixtures 
                with dimmers shall be packed with dimmable lamps).
                    ``(iii) Compact fluorescent lamps prepackaged with 
                light fixtures shall meet the requirements of the 
                Energy Star Program for CFLs Version 4.0.
                    ``(iv) Screw-based LED lamps shall comply with the 
                minimum requirements described in subparagraph (C).
                    ``(E) Be equipped with 1 or more single-ended, non-
                screw based halogen lamp sockets (line or low voltage), 
                a dimmer control or high-low control, and be rated for 
                a maximum of 100 watts.
            ``(2) Review.--
                    ``(A) Review.--The Secretary shall review the 
                criteria and standards established under paragraph (1) 
                to determine if revised standards are technologically 
                feasible and economically justified.
                    ``(B) Components.--The review shall include 
                consideration of--
                            ``(i) whether a separate compliance 
                        procedure is still needed for halogen fixtures 
                        described in subparagraph (E) and, if 
                        necessary, what an appropriate standard for 
                        halogen fixtures shall be;
                            ``(ii) whether the specific technical 
                        criteria described in subparagraphs (A), (C), 
                        and (D)(iii) should be modified; and
                            ``(iii) which fixtures should be exempted 
                        from the light fixture efficacy standard as of 
                        January 1, 2016, because the fixtures are 
                        primarily decorative in nature (as defined by 
                        the Secretary) and, even if exempted, are 
                        likely to be sold in limited quantities.
                    ``(C) Timing.--
                            ``(i) Determination.--Not later than 
                        January 1, 2014, the Secretary shall publish 
                        amended standards, or a determination that no 
                        amended standards are justified, under this 
                        subsection.
                            ``(ii) Standards.--Any standards under this 
                        paragraph shall take effect on January 1, 2016.
            ``(3) Art work light fixtures.--Art work light fixtures 
        manufactured on or after January 1, 2012, shall--
                    ``(A) comply with paragraph (1); or
                    ``(B)(i) contain only ANSI-designated E12 screw-
                based line-voltage sockets;
                    ``(ii) have not more than 3 sockets;
                    ``(iii) be controlled with an integral high/low 
                switch;
                    ``(iv) be rated for not more than 25 watts if 
                fitted with 1 socket; and
                    ``(v) be rated for not more than 15 watts per 
                socket if fitted with 2 or 3 sockets.
            ``(4) Exception from preemption.--Notwithstanding section 
        327, Federal preemption shall not apply to a regulation 
        concerning portable light fixtures adopted by the California 
        Energy Commission on or before January 1, 2014.''.
            (2) GU-24 base lamps.--
                    (A) Definitions.--Section 321 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6291) (as amended by 
                paragraph (1)(A)) is amended by adding at the end the 
                following:
            ``(72) GU-24.--The term `GU-24' means the designation of a 
        lamp socket, based on a coding system by the International 
        Electrotechnical Commission, under which--
                    ``(A) `G' indicates a holder and socket type with 2 
                or more projecting contacts, such as pins or posts;
                    ``(B) `U' distinguishes between lamp and holder 
                designs of similar type that are not interchangeable 
                due to electrical or mechanical requirements; and
                    ``(C) 24 indicates the distance in millimeters 
                between the electrical contact posts.
            ``(73) GU-24 adaptor.--
                    ``(A) In general.--The term `GU-24 Adaptor' means a 
                1-piece device, pig-tail, wiring harness, or other such 
                socket or base attachment that--
                            ``(i) connects to a GU-24 socket on 1 end 
                        and provides a different type of socket or 
                        connection on the other end; and
                            ``(ii) does not alter the voltage.
                    ``(B) Exclusion.--The term `GU-24 Adaptor' does not 
                include a fluorescent ballast with a GU-24 base.
            ``(74) GU-24 base lamp.--`GU-24 base lamp' means a light 
        bulb designed to fit in a GU-24 socket.''.
                    (B) Standards.--Section 325 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6295) (as amended by 
                paragraph (1)(D)) is amended by inserting after 
                subsection (ii) the following:
    ``(jj) GU-24 Base Lamps.--
            ``(1) In general.--A GU-24 base lamp shall not be an 
        incandescent lamp as defined by ANSI.
            ``(2) GU-24 adaptors.--GU-24 adaptors shall not adapt a GU-
        24 socket to any other line voltage socket.''.
            (3) Standards for certain incandescent reflector lamps.--
        Section 325(i) of the Energy Policy and Conservation Act (42 
        U.S.C. 6295(i)), as amended by section 161(a)(12) of this Act, 
        is amended by adding at the end the following:
            ``(9) Certain incandescent reflector lamps.--(A) No later 
        than 12 months after enactment of this paragraph, the Secretary 
        shall publish a final rule establishing standards for 
        incandescent reflector lamp types described in paragraph 
        (1)(D). Such standards shall be effective on July 1, 2013.
            ``(B) Any rulemaking for incandescent reflector lamps 
        completed after enactment of this section shall consider 
        standards for all incandescent reflector lamps, inclusive of 
        those specified in paragraph (1)(C).
            ``(10) Reflector lamps.--No later than January 1, 2015, the 
        Secretary shall publish a final rule establishing and amending 
        standards for reflector lamps, including incandescent reflector 
        lamps. Such standards shall be effective no sooner than 3 years 
        after publication of the final rule. Such rulemaking shall 
        consider incandescent and nonincandescent technologies. Such 
        rulemaking shall consider a new metric other than lumens-per-
        watt based on the photometric distribution of light from such 
        lamps.''.

SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.

    (a) Standards for Water Dispensers, Hot Food Holding Cabinets, and 
Portable Electric Spas.--
            (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291), as amended by section 211 of 
        this Act, is further amended by adding at the end the 
        following:
            ``(75) The term `water dispenser' means a factory-made 
        assembly that mechanically cools and heats potable water and 
        that dispenses the cooled or heated water by integral or remote 
        means.
            ``(76) The term `bottle-type water dispenser' means a 
        drinking water dispenser designed for dispensing both hot and 
        cold water that uses a removable bottle or container as the 
        source of potable water.
            ``(77) The term `commercial hot food holding cabinet' means 
        a heated, fully-enclosed compartment with one or more solid or 
        glass doors that is designed to maintain the temperature of hot 
        food that has been cooked in a separate appliance. Such term 
        does not include heated glass merchandising cabinets, drawer 
        warmers, commercial hot food holding cabinets with interior 
        volumes of less than 8 cubic feet, or cook-and-hold appliances.
            ``(78) The term `portable electric spa' means a factory-
        built electric spa or hot tub, supplied with equipment for 
        heating and circulating water.''.
            (2) Coverage.--Section 322(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6292(a)), as amended by section 
        211(b)(1)(B) of this Act, is further amended by inserting after 
        paragraph (20) the following new paragraphs:
            ``(21) Bottle type water dispensers.
            ``(22) Commercial hot food holding cabinets.
            ``(23) Portable electric spas.''.
            (3) Test procedures.--Section 323(b) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6293(b)), as amended by section 
        211(b)(1)(C) of this Act, is further amended by adding at the 
        end the following:
            ``(20) Bottle type water dispensers.--Test procedures for 
        bottle type water dispensers shall be based on `Energy Star 
        Program Requirements for Bottled Water Coolers version 1.1' 
        published by the Environmental Protection Agency. Units with an 
        integral, automatic timer shall not be tested using section 4D, 
        `Timer Usage,' of the test criteria.
            ``(21) Commercial hot food holding cabinets.--Test 
        procedures for commercial hot food holding cabinets shall be 
        based on the test procedures described in ANSI/ASTM F2140-01 
        (Test for idle energy rate-dry test). Interior volume shall be 
        based on the method shown in the Environmental Protection 
        Agency's `Energy Star Program Requirements for Commercial Hot 
        Food Holding Cabinets' as in effect on August 15, 2003.
            ``(22) Portable electric spas.--Test procedures for 
        portable electric spas shall be based on the test method for 
        portable electric spas contained in section 1604, title 20, 
        California Code of Regulations as amended on December 3, 2008. 
        When the American National Standards Institute publishes a test 
        procedure for portable electric spas, the Secretary shall 
        revise the Department of Energy's procedure.''.
            (4) Standards.--Section 325 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6295), as amended by section 211 of 
        this Act, is further amended by adding after subsection (jj) 
        the following:
    ``(kk) Bottle Type Water Dispensers.--Effective January 1, 2012, 
bottle-type water dispensers designed for dispensing both hot and cold 
water shall not have standby energy consumption greater than 1.2 
kilowatt-hours per day.
    ``(ll) Commercial Hot Food Holding Cabinets.--Effective January 1, 
2012, commercial hot food holding cabinets with interior volumes of 8 
cubic feet or greater shall have a maximum idle energy rate of 40 watts 
per cubic foot of interior volume.
    ``(mm) Portable Electric Spas.--Effective January 1, 2012, portable 
electric spas shall not have a normalized standby power greater than 
5(V\2/3\) Watts where V=the fill volume in gallons.
    ``(nn) Revisions.--The Secretary of Energy shall consider revisions 
to the standards in subsections (kk), (ll), and (mm) in accordance with 
subsection (o) and publish a final rule no later than January 1, 2013 
establishing such revised standards, or make a finding that no 
revisions are technically feasible and economically justified. Any such 
revised standards shall take effect January 1, 2016.''.
    (b) Commercial Furnace Efficiency Standards.--Section 342(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6312(a)) is amended by 
inserting after paragraph (10) the following new paragraph:
            ``(11) Warm air furnaces.--Each warm air furnace with an 
        input rating of 225,000 Btu per hour or more and manufactured 
        after January 1, 2011, shall meet the following standard 
        levels:
                    ``(A) Gas-fired units.--
                            ``(i) Minimum thermal efficiency of 80 
                        percent.
                            ``(ii) Include an interrupted or 
                        intermittent ignition device.
                            ``(iii) Have jacket losses not exceeding 
                        0.75 percent of the input rating.
                            ``(iv) Have either power venting or a flue 
                        damper.
                    ``(B) Oil-fired units.--
                            ``(i) Minimum thermal efficiency of 81 
                        percent.
                            ``(ii) Have jacket losses not exceeding 
                        0.75 percent of the input rating.
                            ``(iii) Have either power venting or a flue 
                        damper.''.

SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.

    (a) Definition of Energy Conservation Standard.--Section 321(6) of 
the Energy Policy and Conservation Act (42 U.S.C. 6291(6)) is amended 
to read as follows:
            ``(6) Energy conservation standard.--
                    ``(A) In general.--The term `energy conservation 
                standard' means 1 or more performance standards that--
                            ``(i) for covered products (excluding 
                        clothes washers, dishwashers, showerheads, 
                        faucets, water closets, and urinals), prescribe 
                        a minimum level of energy efficiency or a 
                        maximum quantity of energy use, determined in 
                        accordance with test procedures prescribed 
                        under section 323;
                            ``(ii) for showerheads, faucets, water 
                        closets, and urinals, prescribe a minimum level 
                        of water efficiency or a maximum quantity of 
                        water use, determined in accordance with test 
                        procedures prescribed under section 323; and
                            ``(iii) for clothes washers and 
                        dishwashers--
                                    ``(I) prescribe a minimum level of 
                                energy efficiency or a maximum quantity 
                                of energy use, determined in accordance 
                                with test procedures prescribed under 
                                section 323; and
                                    ``(II) may include a minimum level 
                                of water efficiency or a maximum 
                                quantity of water use, determined in 
                                accordance with those test procedures.
                    ``(B) Inclusions.--The term `energy conservation 
                standard' includes--
                            ``(i) 1 or more design requirements, if the 
                        requirements were established--
                                    ``(I) on or before the date of 
                                enactment of this subclause;
                                    ``(II) as part of a direct final 
                                rule under section 325(p)(4); or
                                    ``(III) as part of a final rule 
                                published on or after January 1, 2012, 
                                and
                            ``(ii) any other requirements that the 
                        Secretary may prescribe under section 325(r).
                    ``(C) Exclusion.--The term `energy conservation 
                standard' does not include a performance standard for a 
                component of a finished covered product, unless 
                regulation of the component is specifically authorized 
                or established pursuant to this title.''.
    (b) Adopting Consensus Test Procedures and Test Procedures in Use 
Elsewhere.--Section 323(b) of the Energy Policy and Conservation Act 
(42 U.S.C. 6293(b)), as amended by sections 211 and 212 of this Act, is 
further amended by adding the following new paragraph after paragraph 
(22):
            ``(23) Consensus and alternate test procedures.--
                    ``(A) Receipt of joint recommendation or alternate 
                testing procedure.--On receipt of--
                            ``(i) a statement that is submitted jointly 
                        by interested persons that are fairly 
                        representative of relevant points of view 
                        (including representatives of manufacturers of 
                        covered products, States, and efficiency 
                        advocates), as determined by the Secretary, and 
                        contains recommendations with respect to the 
                        testing procedure for a covered product; or
                            ``(ii) a submission of a testing procedure 
                        currently in use for a covered product by a 
                        State, nation, or group of nations--
                                    ``(I) if the Secretary determines 
                                that the recommended testing procedure 
                                contained in the statement or 
                                submission is in accordance with 
                                subsection (b)(3), the Secretary may 
                                issue a final rule that establishes an 
                                energy or water conservation testing 
                                procedure that is published 
                                simultaneously with a notice of 
                                proposed rulemaking that proposes a new 
                                or amended energy or water conservation 
                                testing procedure that is identical to 
                                the testing procedure established in 
                                the final rule to establish the 
                                recommended testing procedure (referred 
                                to in this paragraph as a `direct final 
                                rule'); or
                                    ``(II) if the Secretary determines 
                                that a direct final rule cannot be 
                                issued based on the statement or 
                                submission, the Secretary shall publish 
                                a notice of the determination, together 
                                with an explanation of the reasons for 
                                the determination.
                    ``(B) Public comment.--The Secretary shall solicit 
                public comment for a period of at least 110 days with 
                respect to each direct final rule issued by the 
                Secretary under subparagraph (A)(ii)(I).
                    ``(C) Withdrawal of direct final rules.--
                            ``(i) In general.--Not later than 120 days 
                        after the date on which a direct final rule 
                        issued under subparagraph (A)(ii)(I) is 
                        published in the Federal Register, the 
                        Secretary shall withdraw the direct final rule 
                        if--
                                    ``(I) the Secretary receives 1 or 
                                more adverse public comments relating 
                                to the direct final rule under 
                                subparagraph (B)or any alternative 
                                joint recommendation; and
                                    ``(II) based on the rulemaking 
                                record relating to the direct final 
                                rule, the Secretary determines that 
                                such adverse public comments or 
                                alternative joint recommendation may 
                                provide a reasonable basis for 
                                withdrawing the direct final rule under 
                                paragraph (3) or any other applicable 
                                law.
                            ``(ii) Action on withdrawal.--On withdrawal 
                        of a direct final rule under clause (i), the 
                        Secretary shall--
                                    ``(I) proceed with the notice of 
                                proposed rulemaking published 
                                simultaneously with the direct final 
                                rule as described in subparagraph 
                                (A)(ii)(I); and
                                    ``(II) publish in the Federal 
                                Register the reasons why the direct 
                                final rule was withdrawn.
                            ``(iii) Treatment of withdrawn direct final 
                        rules.--A direct final rule that is withdrawn 
                        under clause (i) shall not be considered to be 
                        a final rule for purposes of subsection (b).
                    ``(D) Effect of paragraph.--Nothing in this 
                paragraph authorizes the Secretary to issue a direct 
                final rule based solely on receipt of more than 1 
                statement containing recommended test procedures 
                relating to the direct final rule.''.
    (c) Updating Television Test Methods.--Section 323(b) of the Energy 
Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by sections 
211 and 212 of this Act, and subsection (b) of this section, is further 
amended by adding at the end the following new paragraph:
            ``(24) Televisions.--(A) On the date of enactment of this 
        paragraph, Appendix H to Subpart B of Part 430 of the United 
        States Code of Federal Regulations, `Uniform Test Method for 
        Measuring the Energy Consumption of Television Sets', is 
        repealed.
            ``(B) No later than 12 months after the date of enactment 
        of this paragraph the Secretary shall publish in the Federal 
        Register a final rule prescribing a new test method for 
        televisions.''.
    (d) Criteria for Prescribing New or Amended Standards.--(1) Section 
325(o)(2)(B)(i) of the Energy Policy and Conservation Act (42 U.S.C. 
6295(o)(2)(B)(i)) is amended as follows:
            (A) By striking ``and'' at the end of subclause (VI).
            (B) By redesignating subclause (VII) as subclause (XI).
            (C) By inserting the following new subclauses after 
        subclause (VI):
            ``(VII) the estimated value of the carbon dioxide and other 
        emission reductions that will be achieved by virtue of the 
        higher energy efficiency of the covered products resulting from 
        the imposition of the standard;
            ``(VIII) the estimated impact of standards for a particular 
        product on average consumer energy prices;
            ``(IX) the increased energy efficiency that may be 
        attributable to the installation of Smart Grid technologies or 
        capabilities in the covered products, if applicable in the 
        determination of the Secretary;
            ``(X) the availability in the United States or in other 
        nations of examples or prototypes of covered products that 
        achieve significantly higher efficiency standards for energy or 
        for water; and''.
    (2) Section 325(o)(2)(B)(iii) of such Act is amended as follows:
            (A) By striking ``three'' and inserting ``5''.
            (B) By inserting after the first sentence the following 
        ``For products with an average expected useful life of less 
        than 5 years, such rebuttable presumption shall be determined 
        utilizing 75 percent of the product's average expected useful 
        life as a multiplier instead of 5.''.
            (C) By striking the last sentence and inserting the 
        following: ``Such a presumption may be rebutted only if the 
        Secretary finds, based on clear, convincing, and reliable 
        evidence, that--
            ``(I) such standard level would cause serious and 
        unavoidable hardship to the average consumer of the product, or 
        to manufacturers supplying a significant portion of the market 
        for the product, that substantially outweighs the standard 
        level's benefits;
            ``(II) the standard and implementing regulations cannot be 
        designed to avoid or mitigate the hardship identified under 
        subclause (I), through the adoption of regional standards 
        consistent with paragraph (6) of this subsection, or other 
        reasonable means consistent with this part;
            ``(III) the same or substantially similar hardship would 
        not occur under a standard adopted in the absence of the 
        presumption, but that otherwise meets the requirements of this 
        section; and
            ``(IV) the hardship cannot be avoided or mitigated pursuant 
        the procedures specified in section 504 of the Department of 
        Energy Organization Act (42 U.S.C. 7194).
A determination by the Secretary that the criteria triggering such 
presumption are not met, or that the criterion for rebutting the 
presumption are met shall not be taken into consideration in the 
Secretary's determination of whether a standard is economically 
justified.''.
    (e) Obtaining Appliance Information From Manufacturers.--Section 
326(d) of the Energy Policy and Conservation Act (42 U.S.C. 6295(d)) is 
amended to read as follows:
    ``(d) Information Requirements.--(1) For purposes of carrying out 
this part, the Secretary shall publish proposed regulations not later 
than 1 year after the date of enactment of the American Clean Energy 
and Security Act of 2009, and after receiving public comment, final 
regulations not later than 18 months from such date of enactment under 
this part or other provision of law administered by the Secretary, 
which shall require each manufacturer of a covered product to submit 
information or reports to the Secretary on an annual basis in a form 
adopted by the Secretary. Such reports shall include information or 
data with respect to--
            ``(A) the manufacturers' compliance with all requirements 
        applicable pursuant to this part;
            ``(B) the economic impact of any proposed energy 
        conservation standard;
            ``(C) the manufacturers' annual shipments of each class or 
        category of covered products, organized, to the maximum extent 
        practicable, by--
                    ``(i) energy efficiency, energy use, and, if 
                applicable, water use;
                    ``(ii) the presence or absence of such efficiency 
                related or energy consuming operational characteristics 
                or components as the Secretary determines are relevant 
                for the purposes of carrying out this part; and
                    ``(iii) the State or regional location of sale, for 
                covered products for which the Secretary may adopt 
                regional standards; and
            ``(D) such other categories of information as the Secretary 
        deems relevant to carry out this part, including such other 
        information as may be necessary to establish and revise test 
        procedures, labeling rules, and energy conservation standards 
        and to insure compliance with the requirements of this part.
    ``(2) In adopting regulations under this subsection, the Secretary 
shall consider existing public sources of information, including 
nationally recognized certification programs of trade associations.
    ``(3) The Secretary shall exercise authority under this section in 
a manner designed to minimize unnecessary burdens on manufacturers of 
covered products.
    ``(4) To the extent that they do not conflict with the duties of 
the Secretary in carrying out this part, the provisions of section 
11(d) of the Energy Supply and Environmental Coordination Act of 1974 
(15 U.S.C. 796(d)) shall apply with respect to information obtained 
under this subsection to the same extent and in the same manner as they 
apply with respect to other energy information obtained under such 
section.''.
    (f) State Waiver.--Section 327(c) of the Energy Policy and 
Conservation Act (42 U.S.C. 6297(c)), as amended by section 161(a)(19) 
of this Act, is further amended by adding at the end the following:
            ``(12) is a regulation concerning standards for hot food 
        holding cabinets, drinking water dispensers and portable 
        electric spas adopted by the California Energy Commission on or 
        before January 1, 2013.''.
    (g) Waiver of Federal Preemption.--Paragraph (1) of section 327(d) 
of the Energy Policy and Conservation Act (42 U.S.C. 6297(d)) is 
amended as follows:
            (1) In subparagraph (A) by striking ``State regulation'' 
        each place it appears and inserting ``State statute or 
        regulation''.
            (2) In subparagraph (B) by adding at the end the following 
        new sentence: ``In making such a finding, the Secretary may not 
        reject a petition for failure of the petitioning State or river 
        basin commission to produce confidential information maintained 
        by any manufacturer or distributor, or group or association of 
        manufacturers or distributors, and which the petitioning party 
        does not have the legal right to obtain.''.
            (3) In clause (ii) of subparagraph (C) by striking 
        ``costs'' each place it appears and inserting ``estimated 
        costs''.
            (4) In subparagraph (C) by striking ``within the context of 
        the State's energy plan and forecast, and,''.
    (h) Inclusion of Carbon Output on Appliance ``Energyguide'' 
Labels.--(1) Section 324(a)(2) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(a)(2)) is amended by adding the following at the 
end:
    ``(I)(i) Not later than 90 days after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to implement 
the additional labeling requirements specified in subsection (c)(1)(C) 
of this section with an effective date for the revised labeling 
requirement not later than 12 months from issuance of the final rule.
    ``(ii) Not later than 24 months after the date of enactment of this 
subparagraph, the Commission shall complete the rulemaking initiated 
under clause (i).
    ``(iii) Not later than 90 days after issuance of the final rule as 
provided in this subparagraph, the Secretary shall issue calculation 
methods required to effectuate the labeling requirements specified in 
subsection (c)(1)(C) of this section.''.
    (2) Section 324(c)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(c)(1)) is amended--
            (A) by striking ``and'' at the end of subparagraph (A);
            (B) by striking the period at the end of subparagraph (B) 
        and inserting a semicolon; and
            (C) by adding at the end the following new subparagraphs:
            ``(C) for products or groups of products providing a 
        comparable function (including the group of products comprising 
        the heating function of heat pumps and furnaces) among covered 
        products listed in paragraphs (3), (4), (5), (8), (9), (10), 
        and (11) of section 322(a) of this part, and others designated 
        by the Secretary, the estimated total annual atmospheric carbon 
        dioxide emissions (or their equivalent in other greenhouse 
        gases) associated with, or caused by, the product, calculated 
        utilizing--
                    ``(i) national average energy use for the product 
                including energy consumed at the point of end use based 
                on test procedures developed under section 323 of this 
                part;
                    ``(ii) national average energy consumed or lost in 
                the production, generation, transportation, storage, 
                and distribution of energy to the point of end use; and
                    ``(iii) any direct emissions of greenhouse gases 
                from the product during normal use;
                    ``(D) in determining the national average energy 
                consumption and total annual atmospheric carbon dioxide 
                emissions, the Secretary shall utilize Federal 
                Government sources, including the Energy Information 
                Administration Annual Energy Review, the Environmental 
                Protection Agency eGRID database, Environmental 
                Protection Agency AP-42 Emission Factors as amended, 
                and other sources determined to be appropriate by the 
                Secretary; and
                    ``(E) information presenting, for each product (or 
                group of products providing the comparable function) 
                identified in section (c)(1)(C) of this section, the 
                estimated annual carbon dioxide emissions calculated 
                within the range of emissions calculated for all models 
                of the product or group according to its function, 
                including those models consuming fuels and those models 
                not consuming fuels.''.
    (i) Permitting States to Seek Injunctive Enforcement.--(1) Section 
334 of the Energy Policy and Conservation Act (42 U.S.C. 6304) is 
amended to read as follows:

``SEC. 334. JURISDICTION AND VENUE.

    ``(a) Jurisdiction.--The United States district courts shall have 
jurisdiction to restrain--
            ``(1) any violation of section 332; and
            ``(2) any person from distributing in commerce any covered 
        product which does not comply with an applicable rule under 
        section 324 or 325.
    ``(b) Authority.--Any action referred to in subsection (a) shall be 
brought by the Commission or by the attorney general of a State in the 
name of the State, except that--
            ``(1) any such action to restrain any violation of section 
        332(a)(3) which relates to requirements prescribed by the 
        Secretary or any violation of section 332(a)(4) which relates 
        to request of the Secretary under section 326(b)(2) shall be 
        brought by the Secretary; and
            ``(2) any violation of section 332(a)(5) or 332(a)(7) shall 
        be brought by the Secretary or by the attorney general of a 
        State in the name of the State.
    ``(c) Venue and Service of Process.--Any such action may be brought 
in the United States district court for a district wherein any act, 
omission, or transaction constituting the violation occurred, or in 
such court of the district wherein the defendant is found or transacts 
business. In any action under this section, process may be served on a 
defendant in any other district in which the defendant resides or may 
be found.''.
    (2) The item relating to section 334 in the table of contents for 
such Act is amended to read as follows:

``Sec. 334. Jurisdiction and venue.''.
    (j) Treatment of Appliances Within Building Codes.--(1) Section 
327(f)(3) of the Energy Policy and Conservation Act (42 U.S.C. 
6297(f)(3)) is amended by striking subparagraphs (B) through (G) and 
inserting the following:
            ``(B) The code meets at least one of the following 
        requirements:
                    ``(i) The code does not require that the covered 
                product have an energy efficiency exceeding--
                            ``(I) the applicable energy conservation 
                        standard established in or prescribed under 
                        section 325;
                            ``(II) the level required by a regulation 
                        of that State for which the Secretary has 
                        issued a rule granting a waiver under 
                        subsection (d) of this section; or
                            ``(III) the required level established in 
                        the International Energy Conservation Code or 
                        in a standard of the American Society of 
                        Heating, Refrigerating and Air-Conditioning 
                        Engineers, or by the Secretary pursuant to 
                        section 304 of the Energy Conservation and 
                        Production Act.
                    ``(ii) If the code uses one or more baseline 
                building designs against which all submitted building 
                designs are to be evaluated and such baseline building 
                designs contain a covered product subject to an energy 
                conservation standard established in or prescribed 
                under section 325, the baseline building designs are 
                based on an efficiency level for such covered product 
                which meets but does not exceed one of the levels 
                specified in clause (i).
                    ``(iii) If the code sets forth one or more optional 
                combinations of items which meet the energy consumption 
                or conservation objective, in at least one combination 
                that the State has found to be reasonably achievable 
                using commercially available technologies the 
                efficiency of the covered product meets but does not 
                exceed one of the levels specified in clause (i).
            ``(C) The credit to the energy consumption or conservation 
        objective allowed by the code for installing covered products 
        having energy efficiencies exceeding one of the levels 
        specified in subparagraph (B)(i) is on a one-for-one equivalent 
        energy use or equivalent energy cost basis, taking into account 
        the typical lifetime of the product.
            ``(D) The energy consumption or conservation objective is 
        specified in terms of an estimated total consumption of energy 
        (which may be calculated from energy loss- or gain-based codes) 
        utilizing an equivalent amount of energy (which may be 
        specified in units of energy or its equivalent cost) and 
        equivalent lifetimes.
            ``(E) The estimated energy use of any covered product 
        permitted or required in the code, or used in calculating the 
        objective, is determined using the applicable test procedures 
        prescribed under section 323, except that the State may permit 
        the estimated energy use calculation to be adjusted to reflect 
        the conditions of the areas where the code is being applied if 
        such adjustment is based on the use of the applicable test 
        procedures prescribed under section 323 or other technically 
        accurate documented procedure.''.
            (2) Section 327(f)(4)(B) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read 
        as follows:
    ``(B) If a building code requires the installation of covered 
products with efficiencies exceeding the levels and requirements 
specified in paragraph (3)(B), such requirement of the building code 
shall not be applicable unless the Secretary has granted a waiver for 
such requirement under subsection (d) of this section.''.

SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy, in consultation with the 
Administrator, shall establish a program to be known as the ``Best-in-
Class Appliances Deployment Program'' to--
            (1) provide bonus payments to retailers or distributors 
        under subsection (c) for sales of best-in-class high-efficiency 
        household appliance models, high-efficiency installed building 
        equipment, and high-efficiency consumer electronics, with the 
        goal of reducing life-cycle costs for consumers, encouraging 
        innovation, and maximizing energy savings and public benefit;
            (2) provide bounties under subsection (d) to retailers and 
        manufacturers for the replacement, retirement, and recycling of 
        old, inefficient, and environmentally harmful products; and
            (3) provide premium awards under subsection (e) to 
        manufacturers for developing and producing new Superefficient 
        Best-in-Class Products.
    (b) Designation of Best-in-Class Product Models.--
            (1) In general.--The Secretary of Energy shall designate 
        product models of appliances, equipment, or electronics as 
        Best-in-Class Product models. The Secretary shall publicly 
        announce the Best-in-Class Product models designated under this 
        subsection. The Secretary shall define product classes broadly 
        and, except as provided in paragraph (2), shall designate as 
        Best-in-Class Product models no more than the most efficient 10 
        percent of the commercially available product models in a class 
        that demonstrate, as a group, a distinctly greater energy 
        efficiency than the average energy efficiency of that class of 
        appliances, equipment, or electronics. In designating models, 
        the Secretary shall--
                    (A) identify commercially available models in the 
                relevant class of products;
                    (B) identify the subgroup of those models that 
                share the distinctly higher energy-efficiency 
                characteristics that warrant designation as best-in-
                class; and
                    (C) add other models in that class to the list of 
                Best-in-Class Product models as they demonstrate their 
                ability to meet the higher-efficiency characteristics 
                on which the designation was made.
            (2) Percentage exception.--If there are fewer than 10 
        product models in a class of products, the Secretary may 
        designate one or more of such models as Best-in-Class Products.
            (3) Review of best-in-class standards.--The Secretary shall 
        review annually the product-specific criteria for designating, 
        and the product models that qualify as, Best-in-Class Products 
        and, after notice and a 30-day comment period, make upwards 
        adjustments in the efficiency criteria as necessary to maintain 
        an appropriate ratio of such product models to the total number 
        of product models in the product class.
            (4) Smart grid energy efficiency savings.--The Secretary 
        shall include energy efficiency savings achieved by a 
        commercially available product having smart grid capability in 
        determining the efficiency level of a product for purposes of a 
        Best-In-Class Product designation pursuant to this subsection. 
        In measuring energy efficiency savings achieved by smart grid 
        capability, the Secretary shall use a metric that--
                    (A) is based on the time-differentiated value and 
                amount of energy consumption;
                    (B) accounts for the capability of the product to 
                respond to a smart grid in which the physical 
                capability of the product to save or delay energy 
                because of a smart grid feature is weighted by the 
                likelihood that the feature will be used;
                    (C) is based on the value of a unit of electric or 
                gas consumption as a function of time of day and 
                season; and
                    (D) includes a test method by which the 
                manufacturer shall determine the energy efficiency of 
                smart grid capable products.
    (c) Bonuses for Sales of Best-in-Class Products.--
            (1) In general.--The Secretary of Energy shall make bonus 
        payments to retailers or, as provided in paragraph (5)(B), 
        distributors for the sale of Best-in-Class Products.
            (2) Bonus program.--The Secretary shall--
                    (A) publicly announce the availability and amount 
                of the bonus to be paid for each sale of a Best-in-
                Class Product of a model designated under subsection 
                (b); and
                    (B) make bonus payments in at least that amount for 
                each Best-in-Class Product of that model sold during 
                the 3-year period beginning on the date the model is 
                designated under subsection (b).
            (3) Upgrade of best-in-class product eligibility.--In 
        conducting a review under subsection (b)(3), the Secretary 
        shall--
                    (A) consider designating as a Best-in-Class Product 
                model a Superefficient Best-in-Class Product model that 
                has been designated pursuant to subsection (e);
                    (B) announce any change in the bonus payment as 
                necessary to increase the market share of Best-in-Class 
                Product models;
                    (C) list models that will be eligible for bonuses 
                in the new amount; and
                    (D) continue paying bonus payments at the original 
                level, for the sale of any models that previously 
                qualified as Best-in-Class Products but do not qualify 
                at the new level, for the remainder of the 3-year 
                period announced with the original designation.
            (4) Size of individual bonus payments.--(A) The size of 
        each bonus payment under this subsection shall be the product 
        of--
                    (i) an amount determined by the Secretary; and
                    (ii) the difference in energy consumption between 
                the Best-in-Class Product and the average product in 
                the product class.
            (B) The Secretary shall determine the amount under 
        subparagraph (A)(i) for each product type, in consultation with 
        State and utility efficiency program administrators as well as 
        the Administrator, based on estimates of the amount of bonus 
        payment that would provide significant incentive to increase 
        the market share of Best-in-Class Products.
            (5) Eligible bonus recipient.--(A) The Secretary shall 
        ensure that not more than 1 bonus payment is provided under 
        this subsection for each Best-in-Class Product.
            (B) The Secretary may make distributors eligible to receive 
        bonus payments under this subsection for sales that are not to 
        the final end-user, to the extent that the Secretary determines 
        that for a particular product category distributors are well 
        situated to increase sales of Best-in-Class Products.
    (d) Bounties for Replacement, Retirement, and Recycling of Existing 
Low-Efficiency Products.--
            (1) In general.--The Secretary of Energy shall make bounty 
        payments to--
                    (A) retailers for the replacement, retirement, and 
                recycling of older operating low-efficiency products 
                that might otherwise continue in operation; and
                    (B) manufacturers of Superefficient Best-in-Class 
                Products for the retirement and recycling of older 
                operating low-efficiency products that perform the same 
                function and which might otherwise continue in 
                operation.
            (2) Bounties.--Bounties shall be payable--
                    (A) to a retailer upon documentation that the sale 
                of a Best-in-Class Product was accompanied by the 
                replacement, retirement, and recycling of--
                            (i) an inefficient but still-functioning 
                        product; or
                            (ii) a nonfunctioning product containing a 
                        refrigerant, by the consumer to whom the Best-
                        in-Class Product was sold; and
                    (B) to a manufacturer upon documentation of the 
                retirement and recycling of--
                            (i) an inefficient but still-functioning 
                        product from a consumer to whom a 
                        Superefficient Best-in-Class Product was 
                        delivered; or
                            (ii) a nonfunctioning product containing a 
                        refrigerant from a consumer to whom a 
                        Superefficient Best-in-Class Product was 
                        delivered.
            (3) Amount.--
                    (A) Functioning products.--The bounty payment 
                payable under this subsection for a product described 
                in paragraphs (2)(A)(i) and (2)(B)(i) shall be based on 
                the difference between the estimated energy use of the 
                product replaced and the energy use of an average new 
                product in the product class, over the estimated 
                remaining lifetime of the product that was replaced.
                    (B) Nonfunctioning products containing 
                refrigerants.--The bounty payment payable under this 
                subsection for a product described in paragraphs 
                (2)(A)(ii) and (2)(B)(ii) shall be in the amount that 
                the Secretary of Energy, in consultation with the 
                Administrator, determines is sufficient to promote the 
                recycling of such products, up to the amount of bounty 
                for a comparable product described in paragraphs (2)(A) 
                and (2)(B).
            (4) Retirement.--The Secretary shall ensure that no product 
        for which a bounty is paid under this subsection is returned to 
        active service, but that it is instead destroyed, and recycled 
        to the extent feasible.
            (5) Recycling appliances containing refrigerants.--
        Exclusively for the purpose of implementing the bounty payment 
        program for products containing a refrigerant under this 
        section, the Administrator shall establish standards for 
        environmentally responsible methods of recycling and disposal 
        of refrigerant-containing appliances that, at a minimum, meet 
        the requirements set by the Responsible Appliance Disposal 
        (RAD) Program for refrigerant disposal. The Secretary shall 
        ensure that such standards are met before a bounty payment is 
        made under this subsection for a product containing a 
        refrigerant. Nothing in this section shall be interpreted to 
        alter the requirements of section 608 of the Clean Air Act or 
        to relieve any person from complying with those requirements.
    (e) Premium Awards for Development and Production of Superefficient 
Best-in-Class Products.--
            (1) In general.--(A) The Secretary of Energy shall provide 
        premium awards to manufacturers for the development and 
        production of Superefficient Best-in-Class Products. The 
        Secretary shall set and periodically revise standards for 
        eligibility of products for designation as a Superefficient 
        Best-in-Class Product.
            (B) The Secretary may establish a standard for a 
        Superefficient Best-in-Class Product even if no product meeting 
        that standard exists, if the Secretary has reasonable grounds 
        to conclude that a mass-producible product could be made to 
        meet that standard.
            (C) The Secretary may also establish a Superefficient Best-
        in-Class Product standard that is met by one or more existing 
        Best-in-Class Product models, if those product models have 
        distinct energy efficiency attributes and performance 
        characteristics that make them significantly better than other 
        product models qualifying as best-in-class. The Secretary may 
        not designate as Superefficient Best-in-Class Products under 
        this subparagraph models that represent more than 10 percent of 
        the currently qualifying Best-in-Class Product models. This 
        subparagraph shall not apply to products designated pursuant to 
        paragraph (4)(A).
            (D) In making its finding on the efficiency level a product 
        can achieve for purposes of a Superefficient Best-In-Class 
        Product designation pursuant to this paragraph, the Secretary 
        shall include energy efficiency savings that would be achieved 
        by a product as a result of smart grid capability when a 
        product having such capability can be produced and sold 
        commercially to mass market consumers. In measuring energy 
        efficiency savings achieved by smart grid capability, the 
        Secretary shall use a metric that--
                    (i) is based on the time-differentiated value and 
                amount of energy consumption;
                    (ii) accounts for the capability of the product to 
                respond to a smart grid in which the physical 
                capability of the product to save or delay energy 
                because of a smart grid feature is weighted by the 
                likelihood that the feature will be used;
                    (iii) is based on the value of a unit of electric 
                or gas consumption as a function of time of day and 
                season; and
                    (iv) includes a test method by which the 
                manufacturer shall determine the energy efficiency of 
                smart grid capable products.
            (2) Premium awards.--(A) The premium award payment provided 
        to a manufacturer under this subsection shall be in addition to 
        any bonus payments made under subsection (c).
            (B) The amount of the premium award paid per unit of 
        Superefficient Best-in-Class Products sold to retailers or 
        distributors shall, except as provided by subparagraph (F), be 
        the product of--
                    (i) an amount determined by the Secretary; and
                    (ii) the difference in energy consumption between 
                the Superefficient Best-in-Class Product and the 
                average product in the product class.
            (C) The Secretary shall determine the amount under 
        subparagraph (B)(i) for each product type, in consultation with 
        State and utility efficiency program administrators as well as 
        the Administrator, based on consideration of the present value 
        to the Nation of the energy (and water or other resources or 
        inputs) saved over the useful life of the product. The 
        Secretary may also take into consideration the methods used to 
        increase sales of qualifying products in determining such 
        amount.
            (D) The Secretary may adjust the value described in 
        subparagraph (C) upward or downward as appropriate, including 
        based on the effect of the premium awards on the sales of 
        products in different classes that may be affected by the 
        program under this subsection.
            (E) Premium award payments shall be applied to sales of any 
        Superefficient Best-in-Class Product for the first 3 years 
        after designation as a Superefficient Best-in-Class Product.
            (F) For years 2011 through 2013, the Secretary shall make 
        bonus payments to manufacturers of the products designated in 
        paragraph (4)(A) for each product produced in the following 
        amounts:
                    (i) $75 for each dishwasher.
                    (ii) $250 for each clothes washer.
                    (iii) $200 for each refrigerator or refrigerator-
                freezer.
                    (iv) $250 for each clothes dryer.
                    (v) $200 for each cooking product.
                    (vi) $300 for each water heater.
            (3) Coordination of incentives.--No product for which 
        Federal tax credit is received under section 45M of the 
        Internal Revenue Code of 1986 shall be eligible to receive 
        premium award payments pursuant to this subsection.
            (4) Designations.--
                    (A) Initial designations.--Notwithstanding any 
                other provisions of this section, the products the 
                Secretary shall designate as a Superefficient Best-In-
                Class Product include, but are not limited to, the 
                following products manufactured in 2011 through 2013:
                            (i) A dishwasher, clothes washer, 
                        refrigerator, or refrigerator-freezer that 
                        meets the highest efficiency performance 
                        standards in its product category as provided 
                        in Section 305(b) of the Emergency Economic 
                        Stabilization Act of 2008 and has the smart 
                        grid capability specified in paragraph (5).
                            (ii) A water heater that meets an 
                        efficiency standard that is the same or 
                        equivalent to the standard provided in Section 
                        1333 of the Energy Policy Act of 2005 and has 
                        the smart grid capability specified in 
                        paragraph (5).
                            (iii) A clothes dryer or cooking product 
                        that the Secretary determines meets the 
                        standards specified in subsection (j)(3), which 
                        the Secretary shall promulgate no later than 1 
                        year after the date of enactment, and has the 
                        smart grid capability specified in paragraph 
                        (5).
                    (B) Extension of initial designations.--
                            (i) General.--The Secretary shall in 2013 
                        extend the Superefficient Best-In-Class Product 
                        designation of each product specified in 
                        subparagraph (A)(i) through (iii) through 2017, 
                        provided that for each product designation 
                        extended--
                                    (I) the extension will result in 
                                significant energy efficiency savings;
                                    (II) the product meets the 
                                Superefficient Best-In-Class Product 
                                criteria specified in paragraph (1);
                                    (III) the eligibility standards of 
                                the product include the smart grid 
                                capability specified in paragraph (5); 
                                and
                                    (IV) the Secretary makes 
                                appropriate revisions to the 
                                eligibility standards of the product as 
                                provided by paragraph (1).
                            (ii) Awards.--If a Superefficient Best-In-
                        Class Product designation for a product is 
                        extended pursuant to this subparagraph, the 
                        premium award for the product shall be 
                        determined in accordance with paragraph (2).
            (5) Smart grid capability.--
                    (A) Until the Secretary promulgates criteria under 
                subparagraph (B), the term ``smart grid capability'' 
                means capability of receiving and interpreting time-of-
                use pricing and peak-load-shed signals from a utility 
                and--
                            (i) in the case of a cooking product, 
                        reducing a minimum of 20 percent during peak 
                        demand as measured by the tested average 
                        wattage over the course of a typical operating 
                        cycle of the product; or
                            (ii) in the case of a clothes washer, a 
                        refrigerator, a dishwasher, a dryer and a water 
                        heater, reducing a minimum of 50 percent during 
                        peak demand as measured by the tested average 
                        wattage over the course of a typical operating 
                        cycle of the product, provided that the typical 
                        operating cycle of a refrigerator and a water 
                        heater shall be a 24-hour period.
                    (B) After completion of the analysis required under 
                section 142(b) of this Act, the Secretary shall 
                expeditiously promulgate, after notice and a 30-day 
                public comment period, criteria for what constitutes 
                ``smart grid capability.''
    (f) Reporting.--The Secretary of Energy shall require, as a 
condition of receiving a bonus, bounty, or premium award under this 
section, that a report containing the following documentation be 
provided:
            (1) For retailers and distributors, the number of units 
        sold within each product type, and model-specific wholesale 
        purchase prices and retail sale prices, on a monthly basis.
            (2) For manufacturers, model-specific energy efficiency and 
        consumption data.
            (3) For manufacturers, on an immediate basis, information 
        concerning any product design or function changes that affect 
        the energy consumption of the unit.
            (4) The methods used to increase the sales of qualifying 
        products.
    (g) Monitoring and Verification Protocols.--The Secretary of Energy 
shall establish monitoring and verification protocols for energy 
consumption tests for each product model and for sales of energy-
efficient models. The Secretary shall estimate actual savings of energy 
from the use of Smart Grid capability in appliances for which premium 
award payments are made pursuant to subsection (e) as a function of 
utility and consumer readiness to utilize such capability.
    (h) Disclosure.--The Secretary of Energy may require that 
manufacturers, retailers and distributors disclose publicly and to 
consumers their participation in the program under this section.
    (i) Cost-Effectiveness Requirement.--
            (1) Requirement.--The Secretary of Energy shall make cost-
        effectiveness a top priority in designing the program under, 
        and administering, this section, except that the cost-
        effectiveness of providing premium awards to manufacturers 
        under subsection (e), in aggregate, may be lower by this 
        measure than that of the bonuses and bounties to retailers and 
        distributors under subsections (c) and (d).
            (2) Definitions.--In this subsection:
                    (A) Cost-effectiveness.--The term ``cost-
                effectiveness'' means a measure of aggregate savings in 
                the cost of energy over the lifetime of a product in 
                relation to the cost to the Secretary of the bonuses, 
                bounties, and premium awards provided under this 
                section for a product.
                    (B) Savings.--The term ``savings'' means the 
                cumulative megawatt-hours of electricity or million 
                British thermal units of other fuels saved by a product 
                during the projected useful life of the product, in 
                comparison to projected energy consumption of the 
                average product in the same class, taking into 
                consideration the impact of any documented measures to 
                replace, retire, and recycle low-efficiency products at 
                the time of purchase of highly-efficient substitutes.
    (j) Definitions.--In this section--
            (1) the term ``distributor'' mean an individual, 
        organization, or company that sells products in multiple lots 
        and not directly to end-users;
            (2) the term ``retailer'' means an individual, 
        organization, or company that sells products directly to end-
        users;
            (3) the term ``manufacturer'' means an individual, 
        organization, or company that transforms raw materials into 
        mass-producible finished goods; and
            (4) the term ``Superefficient Best-in-Class Product'' means 
        a product that--
                    (A) can be mass produced; and
                    (B) achieves the highest level of efficiency that 
                the Secretary of Energy finds can, given the current 
                state of technology, be produced and sold commercially 
                to mass-market consumers.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated $600,000,000 for each of the fiscal years 2011 through 
2013 to the Secretary of Energy for purposes of this section, and such 
sums as may be necessary for subsequent fiscal years. Of funds 
appropriated, not more than 10 percent for any fiscal year may be 
expended on program administration, and not less than 40 percent of any 
funds appropriated during fiscal years 2011 through 2013 shall be for 
purposes of subsection (e).

SEC. 215. WATERSENSE.

    (a) In General.--There is established within the Environmental 
Protection Agency a WaterSense program to identify and promote water 
efficient products, buildings and landscapes, and services in order--
            (1) to reduce water use;
            (2) to reduce the strain on water, wastewater, and 
        stormwater infrastructure;
            (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
            (4) to preserve water resources for future generations,
through voluntary labeling of, or other forms of communications about, 
products, buildings and landscapes, and services that meet the highest 
water efficiency and performance standards.
    (b) Duties.--The Administrator shall--
            (1) promote WaterSense labeled products, buildings and 
        landscapes, and services in the market place as the preferred 
        technologies and services for--
                    (A) reducing water use; and
                    (B) ensuring product and service performance;
            (2) work to enhance public awareness of the WaterSense 
        label through public outreach, education, and other means;
            (3) establish and maintain performance standards so that 
        products, buildings and landscapes, and services labeled with 
        the WaterSense label perform as well or better than their less 
        efficient counterparts;
            (4) publicize the need for proper installation and 
        maintenance of WaterSense products by a licensed, and where 
        certification guidelines exist, WaterSense-certified 
        professional to ensure optimal performance;
            (5) preserve the integrity of the WaterSense label;
            (6) regularly review and, when appropriate, update 
        WaterSense criteria for categories of products, buildings and 
        landscapes, and services, at least once every 4 years;
            (7) to the extent practical, regularly estimate and make 
        available to the public the production and relative market 
        shares of WaterSense labeled products, buildings and 
        landscapes, and services, at least annually;
            (8) to the extent practical, regularly estimate and make 
        available to the public the water and energy savings 
        attributable to the use of WaterSense labeled products, 
        buildings and landscapes, and services, at least annually;
            (9) solicit comments from interested parties and the public 
        prior to establishing or revising a WaterSense category, 
        specification, installation criterion, or other criterion (or 
        prior to effective dates for any such category, specification, 
        installation criterion, or other criterion);
            (10) provide reasonable notice to interested parties and 
        the public of any changes (including effective dates), on the 
        adoption of a new or revised category, specification, 
        installation criterion, or other criterion, along with--
                    (A) an explanation of changes; and
                    (B) as appropriate, responses to comments submitted 
                by interested parties;
            (11) provide appropriate lead time (as determined by the 
        Administrator) prior to the applicable effective date for a new 
        or significant revision to a category, specification, 
        installation criterion, or other criterion, taking into account 
        the timing requirements of the manufacturing, marketing, 
        training, and distribution process for the specific product, 
        building and landscape, or service category addressed; and
            (12) identify and, where appropriate, implement other 
        voluntary approaches in commercial, institutional, residential, 
        municipal, and industrial sectors to encourage reuse and 
        recycling technologies, improve water efficiency, or lower 
        water use while meeting, where applicable, the performance 
        standards established under paragraph (3).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal 
year 2011, $20,000,000 for fiscal year 2012, and $50,000,000 for fiscal 
year 2013 and each year thereafter, adjusted for inflation, to carry 
out this section.

SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 7902(a) of title 5, United States Code.
            (2) Watersense product or service.--The term ``WaterSense 
        product or service'' means a product or service that is rated 
        for water efficiency under the WaterSense program.
            (3) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 215 of this Act.
            (4) FEMP designated product.--The term ``FEMP designated 
        product'' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for 
        efficiency.
            (5) Product and service.--The terms ``product'' and 
        ``service'' do not include any water consuming product or 
        service designed or procured for combat or combat-related 
        missions. The terms also exclude products or services already 
        covered by the Federal procurement regulations established 
        under section 553 of the National Energy Conservation Policy 
        Act (42 U.S.C. 8259b).
    (b) Procurement of Water Efficient Products.--
            (1) Requirement.--To meet the requirements of an agency for 
        a water consuming product or service, the head of the agency 
        shall, except as provided in paragraph (2), procure--
                    (A) a WaterSense product or service; or
                    (B) a FEMP designated product.
        A WaterSense plumbing product should preferably, when possible, 
        be installed by a licensed and, when WaterSense certification 
        guidelines exist, WaterSense-certified plumber or mechanical 
        contractor, and a WaterSense irrigation system should 
        preferably, when possible, be installed, maintained, and 
        audited by a WaterSense-certified irrigation professional to 
        ensure optimal performance.
            (2) Exceptions.--The head of an agency is not required to 
        procure a WaterSense product or service or FEMP designated 
        product under paragraph (1) if the head of the agency finds in 
        writing that--
                    (A) a WaterSense product or service or FEMP 
                designated product is not cost-effective over the life 
                of the product, taking energy and water cost savings 
                into account; or
                    (B) no WaterSense product or service or FEMP 
                designated product is reasonably available that meets 
                the functional requirements of the agency.
            (3) Procurement planning.--The head of an agency shall 
        incorporate into the specifications for all procurements 
        involving water consuming products and systems, including guide 
        specifications, project specifications, and construction, 
        renovation, and services contracts that include provision of 
        water consuming products and systems, and into the factors for 
        the evaluation of offers received for the procurement, criteria 
        used for rating WaterSense products and services and FEMP 
        designated products. The head of an agency shall consider, to 
        the maximum extent practicable, additional measures for 
        reducing agency water consumption, including water reuse 
        technologies, leak detection and repair, and use of waterless 
        products that perform similar functions to existing water-
        consuming products.
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy, working in coordination 
with the Administrator, shall issue guidelines to carry out this 
section.

SEC. 217. EARLY ADOPTER WATER EFFICIENT PRODUCT INCENTIVE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        State government, local or county government, tribal 
        government, wastewater or sewerage utility, municipal water 
        authority, energy utility, water utility, or nonprofit 
        organization that meets the requirements of subsection (b).
            (2) Incentive program.--The term ``incentive program'' 
        means a program for administering financial incentives for 
        consumer purchase and installation of residential water 
        efficient products and services as described in subsection 
        (b)(1).
            (3) Residential water efficient product or service.--The 
        term ``residential water efficient product or service'' means a 
        product or service for a single-family or multifamily residence 
        or its landscape that is rated for water efficiency and 
        performance--
                    (A) by the WaterSense program; or
                    (B) where a WaterSense specification does not 
                exist, by an incentive program.
        Categories of water efficient products and services may include 
        faucets, irrigation technologies and services, point-of-use 
        water treatment devices, reuse and recycling technologies, 
        toilets, and showerheads.
            (4) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 215 of this Act.
    (b) Eligible Entities.--An entity shall be eligible to receive an 
allocation under subsection (c) if the entity--
            (1) establishes (or has established) an incentive program 
        to provide rebates, vouchers, other financial incentives, or 
        direct installs to consumers for the purchase of residential 
        water efficient products or services;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator may require; and
            (3) provides assurances satisfactory to the Administrator 
        that the entity will use the allocation to supplement, but not 
        supplant, funds made available to carry out the incentive 
        program.
    (c) Amount of Allocations.--For each fiscal year, the Administrator 
shall determine the amount to allocate to each eligible entity to carry 
out subsection (d) taking into consideration--
            (1) the population served by the eligible entity in the 
        most recent calendar year for which data are available;
            (2) the targeted population of the eligible entity's 
        incentive program, such as general households, low-income 
        households, or first-time homeowners, and the probable 
        effectiveness of the incentive program for that population;
            (3) for existing programs, the effectiveness of the 
        incentive program in encouraging the adoption of water 
        efficient products and services; and
            (4) any prior year's allocation to the eligible entity that 
        remains unused.
    (d) Use of Allocated Funds.--Funds allocated to an entity under 
subsection (c) may be used to pay up to 50 percent of the cost of 
establishing and carrying out an incentive program.
    (e) Fixture Recycling.--Entities are encouraged to promote or 
implement fixture recycling programs to manage the disposal of older 
fixtures replaced due to the incentive program under this section.
    (f) Issuance of Incentives.--Financial incentives may be provided 
to consumers that meet the requirements of the incentive program. The 
entity may issue all financial incentives directly to consumers or, 
with approval of the Administrator, delegate some or all financial 
incentives administration to other organizations including, but not 
limited to, local governments, municipal water authorities, and water 
utilities. The amount of a financial incentives shall be determined by 
the entity, taking into consideration--
            (1) the amount of the allocation to the entity under 
        subsection (c);
            (2) the amount of any Federal, State, or other 
        organization's tax or financial incentive available for the 
        purchase of the residential water efficient product or service;
            (3) the amount necessary to change consumer behavior to 
        purchase water efficient products and services; and
            (4) the consumer expenditures for onsite preparation, 
        assembly, and original installation of the product.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section $50,000,000 
for fiscal year 2010, $100,000,000 for fiscal year 2011, $150,000,000 
for fiscal year 2012, $100,000,000 for fiscal year 2013, and 
$50,000,000 for fiscal year 2014.

SEC. 218. CERTIFIED STOVES PROGRAM.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``Agency'' means the Environmental 
        Protection Agency.
            (2) Wood stove or pellet stove.--The term ``wood stove or 
        pellet stove'' means a wood stove, pellet stove, or fireplace 
        insert that uses wood or pellets for fuel.
            (3) Certified stove.--The term ``certified stove'' means a 
        wood stove or pellet stove that meets the standards of 
        performance for new residential wood heaters under subpart AAA 
        of part 60 of subchapter C of chapter I of title 40, Code of 
        Federal Regulations (or successor regulations), as certified by 
        the Administrator. Pellet stoves and fireplace inserts using 
        pellets for fuel that are exempt from testing by the 
        Administrator but meet the same standards of performance as 
        wood stoves are considered certified for the purposes of this 
        section.
            (4) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, a local government, or a federally 
                recognized Indian tribe;
                    (B) Alaskan Native villages or regional or village 
                corporations (as defined in, or established under, the 
                Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
                seq.)); and
                    (C) a nonprofit organization or institution that--
                            (i) represents or provides pollution 
                        reduction or educational services relating to 
                        wood smoke minimization to persons, 
                        organizations, or communities; or
                            (ii) has, as its principal purpose, the 
                        promotion of air quality or energy efficiency.
    (b) Establishment.--The Administrator shall establish and carry out 
a program to assist in the replacement of wood stoves or pellet stoves 
that do not meet the standards of performance referred to in subsection 
(a)(4) by--
            (1) requiring that each wood stove or pellet stove sold in 
        the United States on and after the date of enactment of this 
        Act meet the standards of performance referred to in subsection 
        (a)(4);
            (2) requiring that no wood stove or pellet stove replaced 
        under this program is sold or returned to active service, but 
        that it is instead destroyed and recycled to the maximum extent 
        feasible;
            (3) providing funds to an eligible entity to replace a wood 
        stove or pellet stove that does not meet the standards of 
        performance in subsection (a)(4) with a certified stove, 
        including funds to pay for--
                    (A) installation of a replacement certified stove; 
                and
                    (B) necessary replacement of or repairs to 
                ventilation, flues, chimneys, or other relevant items 
                necessary for safe installation of a replacement 
                certified stove;
            (4) in addition to any funds that may be appropriated for 
        the program under this subsection, using existing Federal, 
        State, and local programs and incentives, to the greatest 
        extent practicable;
            (5) prioritizing the replacement of wood stoves or pellet 
        stoves manufactured before July 1, 1990; and
            (6) carrying out such other activities as the Administrator 
        determines appropriate to facilitate the replacement of wood 
        stoves or pellet stoves that do not meet the standards of 
        performance referred to in subsection (a)(3).
    (c) Regulations.--The Administrator may promulgate such regulations 
as are necessary to carry out the program established under subsection 
(b).
    (d) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out the program under this section 
        $20,000,000 for the period of fiscal years 2010 through 2014.
            (2) Designated use.--Of amounts appropriated pursuant to 
        this subsection--
                    (A) 25 percent shall be designated for use to carry 
                out the program under this section on lands held in 
                trust for the benefit of a federally recognized Indian 
                tribe;
                    (B) 3 percent shall be designated for use to carry 
                out the program under this section in Alaskan Native 
                villages or regional or village corporations (as 
                defined in, or established under, the Alaskan Native 
                Claims Settlement Act (43 U.S.C. 1601 et seq.)); and
                    (C) 72 percent shall be designated for use to carry 
                out the program under this section nationwide.
            (3) Regulatory programs.--
                    (A) In general.--No grant or loan provided under 
                this section shall be used to fund the costs of 
                emissions reductions that are mandated under Federal, 
                State, or local law.
                    (B) Mandated.--For purposes of subparagraph (A), 
                voluntary or elective emission reduction measures shall 
                not be considered ``mandated'', regardless of whether 
                the reductions are included in the implementation plan 
                of a State.
    (e) EPA Authority to Accept Wood Stove or Pellet Stove Replacement 
Supplemental Environmental Projects.--
            (1) In general.--The Administrator may accept 
        (notwithstanding sections 3302 and 1301 of title 31, United 
        States Code) wood stove or pellet stove replacement 
        Supplemental Environmental Projects if such projects, as part 
        of a settlement of any alleged violation of environmental law--
                    (A) protect human health or the environment;
                    (B) are related to the underlying alleged 
                violation;
                    (C) do not constitute activities that the defendant 
                would otherwise be legally required to perform; and
                    (D) do not provide funds for the staff of the 
                Agency or for contractors to carry out the Agency's 
                internal operations.
            (2) Certification.--In any settlement agreement regarding 
        an alleged violation of environmental law in which a defendant 
        agrees to perform a wood stove or pellet stove replacement 
        Supplemental Environmental Project, the Administrator shall 
        require the defendant to include in the settlement documents a 
        certification under penalty of law that the defendant would 
        have agreed to perform a comparably valued, alternative project 
        other than a wood stove or pellet stove replacement 
        Supplemental Environmental Project if the Administrator were 
        precluded by law from accepting a wood stove or pellet stove 
        replacement Supplemental Environmental Project. A failure by 
        the Administrator to include this language in such a settlement 
        agreement shall not create a cause of action against the United 
        States under the Clean Air Act or any other law or create a 
        basis for overturning a settlement agreement entered into by 
        the United States.

SEC. 219. ENERGY STAR STANDARDS.

    (a) Energy Star.--Section 324A(c) of the Energy Policy and 
Conservation Act is amended--
            (1) in paragraph (6)(B), by striking ``and'' after the 
        semicolon at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(8) not later than 18 months after the date of enactment 
        of this paragraph, establish and implement a rating system for 
        products identified as Energy Star products pursuant to this 
        section to provide consumers with the most helpful information 
        on the relative energy efficiency, including cost effectiveness 
        from the consumer's perspective, and relative length of time 
        for consumers to recover costs attributable to the energy 
        efficient features, of those products, unless the Administrator 
        and the Secretary communicate to Congress that establishing 
        such a system would diminish the value of the Energy Star brand 
        to consumers;
            ``(9)(A) review the Energy Star product criteria for the 10 
        product models in each product category with the greatest 
        energy consumption at least once every 3 years; and
            ``(B) based on the review, update and publish the Energy 
        Star product criteria for each such category, as necessary; and
            ``(10) require periodic verification of compliance with the 
        Energy Star product criteria by products identified as Energy 
        Star products pursuant to this section, including--
                    ``(A) purchase and testing of products from the 
                market; or
                    ``(B) other appropriate testing and compliance 
                approaches.''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the amendments made by this section 
$5,000,000 for fiscal year 2010 and for each fiscal year thereafter.

                 Subtitle C--Transportation Efficiency

SEC. 221. EMISSIONS STANDARDS.

    Title VIII of the Clean Air Act, as added by section 331 of this 
Act, is amended by inserting after part A the following new part:

                        ``PART B--MOBILE SOURCES

``SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE SOURCES.

    ``(a) New Motor Vehicles and New Motor Vehicle Engines.--(1) 
Pursuant to section 202(a)(1), by December 31, 2010, the Administrator 
shall promulgate standards applicable to emissions of greenhouse gases 
from new heavy-duty motor vehicles or new heavy-duty motor vehicle 
engines, excluding such motor vehicles covered by the Tier II standards 
(as established by the Administrator as of the date of the enactment of 
this section). The Administrator may revise these standards from time 
to time.
    ``(2) Regulations issued under section 202(a)(1) applicable to 
emissions of greenhouse gases from new heavy-duty motor vehicles or new 
heavy-duty motor vehicle engines, excluding such motor vehicles covered 
by the Tier II standards (as established by the Administrator as of the 
date of the enactment of this section), shall contain standards that 
reflect the greatest degree of emissions reduction achievable through 
the application of technology which the Administrator determines will 
be available for the model year to which such standards apply, giving 
appropriate consideration to cost, energy, and safety factors 
associated with the application of such technology. Any such 
regulations shall take effect after such period as the Administrator 
finds necessary to permit the development and application of the 
requisite technology, and, at a minimum, shall apply for a period no 
less than 3 model years beginning no earlier than the model year 
commencing 4 years after such regulations are promulgated.
    ``(3) Regulations issued under section 202(a)(1) applicable to 
emissions of greenhouse gases from new heavy-duty motor vehicles or new 
heavy-duty motor vehicle engines, excluding such motor vehicles covered 
by the Tier II standards (as established by the Administrator as of the 
date of the enactment of this section), shall supersede and satisfy any 
and all of the rulemaking and compliance requirements of section 
32902(k) of title 49, United States Code.
    ``(4) Other than as specifically set forth in paragraph (3) of this 
subsection, nothing in this section shall affect or otherwise increase 
or diminish the authority of the Secretary of Transportation to adopt 
regulations to improve the overall fuel efficiency of the commercial 
goods movement system.
    ``(b) Nonroad Vehicles and Engines.--(1) Pursuant to section 
213(a)(4) and (5), the Administrator shall identify those classes or 
categories of new nonroad vehicles or engines, or combinations of such 
classes or categories, that, in the judgment of the Administrator, both 
contribute significantly to the total emissions of greenhouse gases 
from nonroad engines and vehicles, and provide the greatest potential 
for significant and cost-effective reductions in emissions of 
greenhouse gases. The Administrator shall promulgate standards 
applicable to emissions of greenhouse gases from these new nonroad 
engines or vehicles by December 31, 2012. The Administrator shall also 
promulgate standards applicable to emissions of greenhouse gases for 
such other classes and categories of new nonroad vehicles and engines 
as the Administrator determines appropriate and in the timeframe the 
Administrator determines appropriate. The Administrator shall base such 
determination, among other factors, on the relative contribution of 
greenhouse gas emissions, and the costs for achieving reductions, from 
such classes or categories of new nonroad engines and vehicles. The 
Administrator may revise these standards from time to time.
    ``(2) Standards under section 213(a)(4) and (5) applicable to 
emissions of greenhouse gases from those classes or categories of new 
nonroad engines or vehicles identified in the first sentence of 
paragraph (1) of this subsection, shall achieve the greatest degree of 
emissions reduction achievable based on the application of technology 
which the Administrator determines will be available at the time such 
standards take effect, taking into consideration cost, energy, and 
safety factors associated with the application of such technology. Any 
such regulations shall take effect at the earliest possible date after 
such period as the Administrator finds necessary to permit the 
development and application of the requisite technology, giving 
appropriate consideration to the cost of compliance within such period, 
the applicable compliance dates for other standards, and other 
appropriate factors, including the period of time appropriate for the 
transfer of applicable technology from other applications, including 
motor vehicles, and the period of time in which previously promulgated 
regulations have been in effect.
    ``(3) For purposes of this section and standards under section 
213(a)(4) or (5) applicable to emissions of greenhouse gases, the term 
`nonroad engines and vehicles' shall include non-internal combustion 
engines and the vehicles these engines power (such as electric engines 
and electric vehicles), for those non-internal combustion engines and 
vehicles which would be in the same category and have the same uses as 
nonroad engines and vehicles that are powered by internal combustion 
engines.
    ``(c) Averaging, Banking, and Trading of Emissions Credits.--In 
establishing standards applicable to emissions of greenhouse gases 
pursuant to this section and sections 202(a), 213(a)(4) and (5), and 
231(a), the Administrator may establish provisions for averaging, 
banking, and trading of greenhouse gas emissions credits within or 
across classes or categories of motor vehicles and motor vehicle 
engines, nonroad vehicles and engines (including marine vessels), and 
aircraft and aircraft engines, to the extent the Administrator 
determines appropriate and considering the factors appropriate in 
setting standards under those sections. Such provisions may include 
reasonable and appropriate provisions concerning generation, banking, 
trading, duration, and use of credits.
    ``(d) Reports.--The Administrator shall, from time to time, submit 
a report to Congress that projects the amount of greenhouse gas 
emissions from the transportation sector, including transportation 
fuels, for the years 2030 and 2050, based on the standards adopted 
under this section.
    ``(e) Greenhouse Gases.--Notwithstanding the provisions of section 
711, hydrofluorocarbons shall be considered a greenhouse gas for 
purposes of this section.''.

SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION 
              EFFICIENCY.

    (a) Environmental Protection Agency.--Title VIII of the Clean Air 
Act, as added by section 331 of this Act, is further amended by 
inserting after part C the following new part:

                   ``PART D--TRANSPORTATION EMISSIONS

``SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION 
              EFFICIENCY.

    ``(a) In General.--The Administrator, in consultation with the 
Secretary of Transportation, shall promulgate, and update from time to 
time, regulations to establish national transportation-related 
greenhouse gas emissions reduction goals, standardized models and 
methodologies for use in developing surface transportation-related 
greenhouse gas emissions reduction targets pursuant to sections 134 and 
135 of title 23 of the United States Code and methods for collection of 
data on transportation-related greenhouse gas emissions. Such goals 
shall be commensurate with the emissions reductions goals established 
under the American Clean Energy and Security Act of 2009. In 
establishing such goals, models, and methodologies, the Administrator 
shall consult with States and metropolitan planning organizations and 
may utilize existing models and methodologies.
    ``(b) Timing.--The Administrator shall--
            ``(1) publish proposed regulations under subsection (a) not 
        later than 12 months after the date of enactment of this 
        section; and
            ``(2) promulgate final regulations under subsection (a) not 
        later than 18 months after the date of enactment of this 
        section.
    ``(c) Assessment.--At least every 6 years after promulgating final 
regulations under subsection (a), the Administrator, jointly with the 
Secretary of Transportation, shall assess current and projected 
progress in reducing national transportation-related greenhouse gas 
emissions. The assessment shall examine the contributions to emissions 
reductions attributable to improvements in vehicle efficiency, 
greenhouse gas performance of transportation fuels, increased 
efficiency in utilizing transportation systems and the effects of local 
and State planning.''.
    (b) Metropolitan Planning Organizations.--Section 134 of title 23 
of the United States Code is amended as follows:
            (1) In subsection (a)(1)--
                    (A) by striking ``minimizing'' and inserting 
                ``reducing''; and
                    (B) by inserting ``, reliance on oil, impacts on 
                the environment, transportation-related greenhouse gas 
                emissions'' after ``consumption''.
            (2) In subsection (h)(1)(E)--
                    (A) by inserting ``sustainability and livability, 
                reduce surface transportation-related greenhouse gas 
                emissions and reliance on oil, adapt to the effects of 
                climate change,'' after ``energy conservation'';
                    (B) by inserting ``and public health'' after 
                ``quality of life''; and
                    (C) by inserting ``, including housing and land use 
                patterns'' after ``development patterns''.
            (3) In subsection (i)(4)(A) by inserting ``air quality, 
        public health, housing, transportation,'' after 
        ``conservation,''.
            (4) In subsection (k) by inserting at the end the following 
        new paragraph:
            ``(6) Emissions reduction process.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section 
                shall address transportation-related greenhouse gas 
                emissions by including emission reduction targets and 
                strategies.
                    ``(B) Establishment of emissions reduction targets 
                and strategies.--
                            ``(i) In general.--Not later than 1 year 
                        after the promulgation of the final regulations 
                        required under section 841 of the Clean Air 
                        Act, each metropolitan planning organization 
                        shall develop surface transportation-related 
                        greenhouse gas emission reduction targets, as 
                        well as strategies to meet such targets, as 
                        part of the transportation planning process 
                        under this section. If more than one 
                        metropolitan planning organization has been 
                        designated within a metropolitan planning area 
                        serving a transportation management area, each 
                        such metropolitan planning organization shall 
                        work cooperatively with other such organization 
                        to develop the surface transportation-related 
                        greenhouse gas emission reduction targets 
                        required under this subparagraph.
                            ``(ii) Minimum requirements.--Each 
                        metropolitan planning organization that 
                        develops targets and strategies required under 
                        clause (i) shall demonstrate progress in 
                        stabilizing and reducing transportation-related 
                        greenhouse gas emissions in each metropolitan 
                        planning area serving a surface transportation 
                        management area. The targets and strategies 
                        shall, at a minimum--
                                    ``(I) be based on the models and 
                                methodologies established in the final 
                                regulations required under section 841 
                                of the Clean Air Act;
                                    ``(II) address sources of surface 
                                transportation-related greenhouse gas 
                                emissions and contribute to achievement 
                                of the national transportation-related 
                                greenhouse gas emissions reduction 
                                goals;
                                    ``(III) include efforts to increase 
                                public transportation ridership; and
                                    ``(IV) include efforts to increase 
                                walking, bicycling, and other forms of 
                                nonmotorized transportation.
                    ``(C) Public notice.--Each metropolitan planning 
                organization shall make its emission reduction targets 
                and strategies, and an analysis of the anticipated 
                effects thereof, available to the public through its 
                Web site.
                    ``(D) Enforcement.--If the Secretary finds that a 
                metropolitan planning organization has failed to 
                develop, submit or publish its emission reduction 
                targets and strategies, the Secretary shall not certify 
                that the requirements of this section are met with 
                respect to the metropolitan planning process of such 
                organization.''.
    (c) States.--Section 135 of title 23 of the United States Code is 
amended as follows:
            (1) In subsection (d)(1)(E)--
                    (A) by inserting ``sustainability and livability, 
                reduce surface transportation-related greenhouse gas 
                emissions and reliance on oil, adapt to the effects of 
                climate change,'' after ``energy conservation'';
                    (B) by inserting ``and public health'' after 
                ``quality of life''; and
                    (C) by inserting ``, including housing and land use 
                patterns'' after ``development patterns''.
            (2) In subsection (f)(2)(D)(i) by inserting ``air quality, 
        public health, housing, transportation,'' after 
        ``conservation,''.
            (3) In subsection (f) by inserting at the end the following 
        new paragraph:
            ``(9) Emissions reduction process.--
                    ``(A) In general.--Within a State, the 
                transportation planning process under this section 
                shall address transportation-related greenhouse gas 
                emissions by including emission reduction targets and 
                strategies.
                    ``(B) Establishment of emissions reduction targets 
                and strategies.--
                            ``(i) In general.--Not later than 1 year 
                        after the promulgation of the final regulations 
                        required under section 841 of the Clean Air 
                        Act, each State shall develop surface 
                        transportation-related greenhouse gas emission 
                        reduction targets, as well as strategies to 
                        meet such targets, as part of the 
                        transportation planning process under this 
                        section.
                            ``(ii) Minimum requirements.--Each State 
                        that develops targets and strategies required 
                        under clause (i) shall demonstrate progress in 
                        stabilizing and reducing transportation-related 
                        greenhouse gas emissions in such State. The 
                        targets and strategies shall, at a minimum--
                                    ``(I) be based on the models and 
                                methodologies established in the final 
                                regulations required under section 841 
                                of the Clean Air Act;
                                    ``(II) address sources of surface 
                                transportation-related greenhouse gas 
                                emissions and contribute to achievement 
                                of the national transportation-related 
                                greenhouse gas emissions reduction 
                                goals;
                                    ``(III) include efforts to increase 
                                public transportation ridership; and
                                    ``(IV) include efforts to increase 
                                walking, bicycling, and other forms of 
                                nonmotorized transportation.
                    ``(D) Public notice.--Each State shall make its 
                emission reduction targets and strategies, and an 
                analysis of the anticipated effects thereof, available 
                to the public through its Web site.
                    ``(E) Enforcement.--If the Secretary finds that a 
                State has failed to develop, submit or publish its 
                emission reduction targets and strategies, the 
                Secretary shall not certify that the requirements of 
                this section are met with respect to the statewide 
                planning process of such State.''.
    (d) Department of Transportation.--The Secretary of Transportation 
shall establish appropriate requirements, including performance 
measures, to ensure that transportation plans developed under sections 
134 and 135 of title 23 of the United States Code sufficiently meet the 
requirements of this section, including achieving progress towards 
national transportation-related greenhouse gas emissions reduction 
goals.

SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

    Part B of title VIII of the Clean Air Act, as added by section 221 
of this Act is amended by adding after section 821 the following 
section:

``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

    ``(a) In General.--There is established within the Environmental 
Protection Agency a SmartWay Transport Program to quantify, 
demonstrate, and promote the benefits of technologies, products, fuels, 
and operational strategies that reduce petroleum consumption, air 
pollution, and greenhouse gas emissions from the mobile source sector.
    ``(b) General Duties.--Under the program established under this 
section, the Administrator shall carry out each of the following:
            ``(1) Development of measurement protocols to evaluate the 
        energy consumption and greenhouse gas impacts from technologies 
        and strategies in the mobile source sector, including those for 
        passenger transport and goods movement.
            ``(2) Development of qualifying thresholds for certifying, 
        verifying, or designating energy-efficient, low-greenhouse gas 
        SmartWay technologies and strategies for each mode of passenger 
        transportation and goods movement.
            ``(3) Development of partnership and recognition programs 
        to promote best practices and drive demand for energy-
        efficient, low-greenhouse gas transportation performance.
            ``(4) Promotion of the availability of, and encouragement 
        of the adoption of, SmartWay certified or verified technologies 
        and strategies, and publication of the availability of 
        financial incentives, such as assistance from loan programs and 
        other Federal and State incentives.
    ``(c) Smartway Transport Freight Partnership.--The Administrator 
shall establish a SmartWay Transport Freight Partnership program with 
shippers and carriers of goods to promote energy-efficient, low-
greenhouse gas transportation. In carrying out such partnership, the 
Administrator shall undertake each of the following:
            ``(1) Certification of the energy and greenhouse gas 
        performance of participating freight carriers, including those 
        operating rail, trucking, marine, and other goods movement 
        operations.
            ``(2) Publication of a comprehensive energy and greenhouse 
        gas performance index of freight modes (including rail, 
        trucking, marine, and other modes of transporting goods) and 
        individual freight companies so that shippers can choose to 
        deliver their goods more efficiently.
            ``(3) Development of tools for--
                    ``(A) carriers to calculate their energy and 
                greenhouse gas performance; and
                    ``(B) shippers to calculate the energy and 
                greenhouse gas impacts of moving their products and to 
                evaluate the relative impacts from transporting their 
                goods by different modes and corporate carriers.
            ``(4) Provision of recognition opportunities for 
        participating shipper and carrier companies demonstrating 
        advanced practices and achieving superior levels of greenhouse 
        gas performance.
    ``(d) Improving Freight Greenhouse Gas Performance Databases.--The 
Administrator shall, in coordination with other appropriate agencies, 
define and collect data on the physical and operational characteristics 
of the Nation's truck population, with special emphasis on data related 
to energy efficiency and greenhouse gas performance to inform the 
performance index published under subsection (c)(2) of this section, 
and other means of goods transport as necessary, at least every 5 
years.
    ``(e) Establishment of Financing Program.--The Administrator shall 
establish a SmartWay Financing Program to competitively award funding 
to eligible entities identified by the Administrator in accordance with 
the program requirements in subsection (g).
    ``(f) Purpose.--Under the SmartWay Financing Program, eligible 
entities shall--
            ``(1) use funds awarded by the Administrator to provide 
        flexible loan and lease terms that increase approval rates or 
        lower the costs of loans and leases in accordance with guidance 
        developed by the Administrator; and
            ``(2) make such loans and leases available to public and 
        private entities for the purpose of adopting low-greenhouse gas 
        technologies or strategies for the mobile source sector that 
        are designated by the Administrator.
    ``(g) Program Requirements.--The Administrator shall determine 
program design elements and requirements, including--
            ``(1) the type of financial mechanism with which to award 
        funding, in the form of grants or contracts;
            ``(2) the designation of eligible entities to receive 
        funding, including State, tribal, and local governments, 
        regional organizations comprised of governmental units, 
        nonprofit organizations, or for-profit companies;
            ``(3) criteria for evaluating applications from eligible 
        entities, including anticipated--
                    ``(A) cost-effectiveness of loan or lease program 
                on a metric-ton-of-greenhouse gas-saved-per-dollar 
                basis;
                    ``(B) ability to promote the loan or lease program 
                and associated technologies and strategies to the 
                target audience; and
            ``(4) reporting requirements for entities that receive 
        awards, including--
                    ``(A) actual cost-effectiveness and greenhouse gas 
                savings from the loan or lease program based on a 
                methodology designated by the Administrator;
                    ``(B) the total number of applications and number 
                of approved applications; and
                    ``(C) terms granted to loan and lease recipients 
                compared to prevailing market practices.
    ``(h) Authorization of Appropriations.--Such sums as necessary are 
authorized to be appropriated to the Administrator to carry out this 
section.''.

SEC. 224. STATE VEHICLE FLEETS.

    Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C. 13257) 
is amended by adding the following new paragraph at the end thereof:
    ``(3) The Secretary shall revise the rules under this subsection 
with respect to the types of alternative fueled vehicles required for 
compliance with this subsection to ensure those rules are consistent 
with any guidance issued pursuant to section 303 of this Act.''.

           Subtitle D--Industrial Energy Efficiency Programs

SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall continue to support the development 
of the American National Standards Institute (ANSI) voluntary 
industrial plant energy efficiency certification program, pending 
International Standards Organization (ISO) consensus standard 50001, 
and other related ANSI/ISO standards. In addition, the Department shall 
undertake complementary activities through the Department of Energy's 
Industry Technologies Program that support the voluntary implementation 
of such standards by manufacturing firms. There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
these activities. The Secretary shall report to Congress on the status 
of standards development and plans for further standards development 
pursuant to this section by not later than 18 months after the date of 
enactment of this Act, and shall prepare a second such report 18 months 
thereafter.

SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD PROGRAM.

    (a) Electric and Thermal Waste Energy Recovery Awards.--The 
Secretary of Energy shall establish a program to make monetary awards 
to the owners and operators of new and existing electric energy 
generation facilities or thermal energy production facilities using 
fossil or nuclear fuel, to encourage them to use innovative means of 
recovering any thermal energy that is a potentially useful byproduct of 
electric power generation or other processes to--
            (1) generate additional electric energy; or
            (2) make sales of thermal energy not used for electric 
        generation, in the form of steam, hot water, chilled water, or 
        desiccant regeneration, or for other commercially valid 
        purposes.
    (b) Amount of Awards.--
            (1) Eligibility.--Awards shall be made under subsection (a) 
        only for the use of innovative means that achieve net energy 
        efficiency at the facility concerned significantly greater than 
        the current standard technology in use at similar facilities.
            (2) Amount.--The amount of an award made under subsection 
        (a) shall equal an amount up to the value of 25 percent of the 
        energy projected to be recovered or generated during the first 
        5 years of operation of the facility using the innovative 
        energy recovery method, or such lesser amount that the 
        Secretary determines to be the minimum amount that can cost-
        effectively stimulate such innovation.
            (3) Limitation.--No person may receive an award under this 
        section if a grant under the waste energy incentive grant 
        program under section 373 of the Energy Policy and Conservation 
        Act (42 U.S.C. 6343) is made for the same energy savings 
        resulting from the same innovative method.
    (c) Regulatory Status.--The Secretary of Energy shall--
            (1) assist State regulatory commissions to identify and 
        make changes in State regulatory programs for electric 
        utilities to provide appropriate regulatory status for thermal 
        energy byproduct businesses of regulated electric utilities to 
        encourage those utilities to enter businesses making the sales 
        referred to in subsection (a)(2); and
            (2) encourage self-regulated utilities to enter businesses 
        making the sales referred to in subsection (a)(2).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as are necessary for 
the purposes of this section.

SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY FINANCIAL 
              INCENTIVES.

    Section 373(e) of the Energy Policy and Conservation Act (42 U.S.C. 
6343(e)) is amended--
            (1) by striking ``that qualifies for'' and inserting ``who 
        elects to claim''; and
            (2) by inserting ``from that project'' after ``for waste 
        heat recovery''.

SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS PROGRAM.

    (a) Findings.--Congress finds that--
            (1) electric motor systems account for about half of the 
        electricity used in the United States;
            (2) electric motor energy use is determined by both the 
        efficiency of the motor and the system in which the motor 
        operates;
            (3) Federal Government research on motor end use and 
        efficiency opportunities is more than a decade old; and
            (4) the Census Bureau has discontinued collection of data 
        on motor and generator importation, manufacture, shipment, and 
        sales.
    (b) Definitions.--In this section:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Interested parties.--The term ``interested parties'' 
        includes--
                    (A) trade associations;
                    (B) motor manufacturers;
                    (C) motor end users;
                    (D) electric utilities; and
                    (E) individuals and entities that conduct energy 
                efficiency programs.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy, in consultation with interested parties.
    (c) Assessment.--The Secretary shall conduct an assessment of 
electric motors and the electric motor market in the United States that 
shall--
            (1) include important subsectors of the industrial and 
        commercial electric motor market (as determined by the 
        Secretary), including--
                    (A) the stock of motors and motor-driven equipment;
                    (B) efficiency categories of the motor population; 
                and
                    (C) motor systems that use drives, servos, and 
                other control technologies;
            (2) characterize and estimate the opportunities for 
        improvement in the energy efficiency of motor systems by market 
        segment, including opportunities for--
                    (A) expanded use of drives, servos, and other 
                control technologies;
                    (B) expanded use of process control, pumps, 
                compressors, fans or blowers, and material handling 
                components; and
                    (C) substitution of existing motor designs with 
                existing and future advanced motor designs, including 
                electronically commutated permanent magnet, interior 
                permanent magnet, and switched reluctance motors; and
            (3) develop an updated profile of motor system purchase and 
        maintenance practices, including surveying the number of 
        companies that have motor purchase and repair specifications, 
        by company size, number of employees, and sales.
    (d) Recommendations; Update.--Based on the assessment conducted 
under subsection (c), the Secretary shall--
            (1) develop--
                    (A) recommendations to update the detailed motor 
                profile on a periodic basis;
                    (B) methods to estimate the energy savings and 
                market penetration that is attributable to the Save 
                Energy Now Program of the Department; and
                    (C) recommendations for the Director of the Census 
                Bureau on market surveys that should be undertaken in 
                support of the motor system activities of the 
                Department; and
            (2) prepare an update to the Motor Master+ program of the 
        Department.
    (e) Program.--Based on the assessment, recommendations, and update 
required under subsections (c) and (d), the Secretary shall establish a 
proactive, national program targeted at motor end-users and delivered 
in cooperation with interested parties to increase awareness of--
            (1) the energy and cost-saving opportunities in commercial 
        and industrial facilities using higher efficiency electric 
        motors;
            (2) improvements in motor system procurement and management 
        procedures in the selection of higher efficiency electric 
        motors and motor-system components, including drives, controls, 
        and driven equipment; and
            (3) criteria for making decisions for new, replacement, or 
        repair motor and motor system components.

SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.

    (a) In General.--Part C of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6311 et seq.) is amended by adding at the 
end the following:

``SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.

    ``(a) Establishment.--Not later than January 1, 2010, in accordance 
with subsection (b), the Secretary shall establish a program to provide 
rebates for expenditures made by entities--
            ``(1) for the purchase and installation of a new electric 
        motor that has a nominal full load efficiency that is not less 
        than the nominal full load efficiency as defined in--
                    ``(A) table 12-12 of NEMA Standards Publication MG 
                1-2006 for random wound motors rated 600 volts or 
                lower; or
                    ``(B) table 12-13 of NEMA Standards Publication MG 
                1-2006 for form wound motors rated 5000 volts or lower; 
                and
            ``(2) to replace an installed motor of the entity the 
        specifications of which are established by the Secretary by a 
        date that is not later than 90 days after the date of enactment 
        of this section.
    ``(b) Requirements.--
            ``(1) Application.--To be eligible to receive a rebate 
        under this section, an entity shall submit to the Secretary an 
        application in such form, at such time, and containing such 
        information as the Secretary may require, including--
                    ``(A) demonstrated evidence that the entity 
                purchased an electric motor described in subsection 
                (a)(1) to replace an installed motor described in 
                subsection (a)(2);
                    ``(B) demonstrated evidence that the entity--
                            ``(i) removed the installed motor of the 
                        entity from service; and
                            ``(ii) properly disposed the installed 
                        motor of the entity; and
                    ``(C) the physical nameplate of the installed motor 
                of the entity.
            ``(2) Authorized amount of rebate.--The Secretary may 
        provide to an entity that meets each requirement under 
        paragraph (1) a rebate the amount of which shall be equal to 
        the product obtained by multiplying--
                    ``(A) the nameplate horsepower of the electric 
                motor purchased by the entity in accordance with 
                subsection (a)(1); and
                    ``(B) $25.00.
            ``(3) Payments to distributors of qualifying electric 
        motors.--To assist in the payment for expenses relating to 
        processing and motor core disposal costs, the Secretary shall 
        provide to the distributor of an electric motor described in 
        subsection (a)(1), the purchaser of which received a rebate 
        under this section, an amount equal to the product obtained by 
        multiplying--
                    ``(A) the nameplate horsepower of the electric 
                motor; and
                    ``(B) $5.00.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, to remain available until 
expended--
            ``(1) $80,000,000 for fiscal year 2011;
            ``(2) $75,000,000 for fiscal year 2012;
            ``(3) $70,000,000 for fiscal year 2013;
            ``(4) $65,000,000 for fiscal year 2014; and
            ``(5) $60,000,000 for fiscal year 2015.''.
    (b) Table of Contents.--The table of contents of the Energy Policy 
and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the 
end of the items relating to part C of title III the following:

``Sec. 347. Motor efficiency rebate program.''.

SEC. 246. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

    The National Institute of Standards and Technology Act (15 U.S.C. 
271 et seq.) is amended by inserting after section 26 the following:

``SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING LOAN FUND PROGRAM.

    ``(a) Purposes.--The purposes of this section are as follows:
            ``(1) To develop the long-term manufacturing capacity of 
        the United States.
            ``(2) To create jobs through the retooling and expansion of 
        manufacturing facilities to produce clean energy technology 
        products and energy efficient products.
            ``(3) To improve the long-term competitiveness of domestic 
        manufacturing by increasing the energy efficiency of 
        manufacturing facilities.
            ``(4) To assist small and medium-sized manufacturers 
        diversify operations to respond to emerging clean energy 
        technology product markets.
    ``(b) Definitions.--In this section:
            ``(1) Clean energy technology product.--The term `clean 
        energy technology product' means technology products relating 
        to the following:
                    ``(A) Wind turbines.
                    ``(B) Solar energy.
                    ``(C) Fuel cells.
                    ``(D) Advanced batteries, battery systems, or 
                storage devices.
                    ``(E) Biomass equipment.
                    ``(F) Geothermal equipment.
                    ``(G) Advanced biofuels.
                    ``(H) Ocean energy equipment.
                    ``(I) Carbon capture and storage.
                    ``(J) Such other products as the Secretary 
                determines--
                            ``(i) relate to the production, use, 
                        transmission, storage, control, or conservation 
                        of energy;
                            ``(ii) reduce greenhouse gas 
                        concentrations;
                            ``(iii) achieve the earliest and maximum 
                        emission reductions within a reasonable period 
                        per dollar invested;
                            ``(iv) result in the fewest non-greenhouse 
                        gas environmental impacts; and
                            ``(v) either--
                                    ``(I) reduce the need for 
                                additional energy supplies by--
                                            ``(aa) using existing 
                                        energy supplies with greater 
                                        efficiency; or
                                            ``(bb) by transmitting, 
                                        distributing, or transporting 
                                        energy with greater 
                                        effectiveness through the 
                                        infrastructure of the United 
                                        States; or
                                    ``(II) diversity the sources of 
                                energy supply of the United States--
                                            ``(aa) to strengthen energy 
                                        security; and
                                            ``(bb) to increase supplies 
                                        with a favorable balance of 
                                        environmental effects if the 
                                        entire technology system is 
                                        considered.
            ``(2) Energy efficient product.--The term `energy efficient 
        product' means a product that, as determined by the Secretary 
        in consultation with the Secretary of Energy--
                    ``(A) consumes significantly less energy than the 
                average amount that all similar products consumed on 
                the day before the date of the enactment of this Act; 
                or
                    ``(B) is a component, system, or group of 
                subsystems that is designed, developed, and validated 
                to optimize the energy efficiency of a product.
            ``(3) Hollings manufacturing extension center.--The term 
        `Hollings Manufacturing Extension Center' means a center 
        established under section 25.
            ``(4) Hollings manufacturing partnership program.--The term 
        `Hollings Manufacturing Partnership Program' means the program 
        established under sections 25 and 26.
            ``(5) Program.--The term `Program' means the grant program 
        established pursuant to subsection (c)(1).
            ``(6) Revolving loan fund.--The term `revolving loan fund' 
        means a revolving loan fund described in subsection (d).
            ``(7) Secretary.--Except as otherwise provided, the term 
        `Secretary' means the Secretary of Commerce.
            ``(8) Small or medium-sized manufacturer.--The term `small 
        or medium-sized manufacturer' means a manufacturer that employs 
        fewer than 500 full-time equivalent employees at a 
        manufacturing facility that is not owned or controlled by an 
        automobile manufacturer.
    ``(c) Grant Program.--
            ``(1) Establishment.--Not later than 120 days after the 
        date of the enactment of this section, the Secretary shall 
        establish a program under which the Secretary shall award 
        grants to States to establish revolving loan funds to provide 
        loans to small and medium-sized manufacturers to finance the 
        cost of--
                    ``(A) reequipping, expanding, or establishing 
                (including applicable engineering costs) a 
                manufacturing facility in the United States to 
                produce--
                            ``(i) clean energy technology products;
                            ``(ii) energy efficient products; or
                            ``(iii) integral component parts of clean 
                        energy technology products or energy efficient 
                        products; or
                    ``(B) reducing the energy intensity or greenhouse 
                gas production of a manufacturing facility in the 
                United States, including using energy intensive 
                feedstocks.
            ``(2) Maximum amount.--The Secretary may not award a grant 
        under the Program in an amount that exceeds $500,000,000 in any 
        fiscal year.
    ``(d) Criteria for Awarding Grants.--
            ``(1) Matching funds.--The Secretary may make a grant to a 
        State under the Program only if the State agrees to ensure that 
        for each loan provided by the State under the Program, not less 
        than 20 percent of the amount of each loan will come from a 
        non-Federal source.
            ``(2) Administrative costs.--A State receiving a grant 
        under the Program may only use such amount of the grant for the 
        costs of administering the revolving loan fund as the Secretary 
        shall provide in regulations.
            ``(3) Application.--Each State seeking a grant under the 
        Program shall submit to the Secretary an application therefor 
        in such form and in such manner as the Secretary considers 
        appropriate.
            ``(4) Evaluation.--The Secretary shall evaluate and 
        prioritize an application submitted by a State for a grant 
        under the Program on the basis of--
                    ``(A) the description of the revolving loan fund to 
                be established with the grant and how such revolving 
                loan fund will achieve the purposes described in 
                subsection (a);
                    ``(B) whether the State will be able to provide 
                loans from the revolving loan fund to small or medium-
                sized manufacturers before the date that is 120 days 
                after the date on which the State receives the grant;
                    ``(C) a description of how the State will 
                administer the revolving loan fund in coordination with 
                other State and Federal programs, including programs 
                administered by the Assistant Secretary for Economic 
                Development;
                    ``(D) a description of the actual or potential 
                clean energy manufacturing supply chains, including 
                significant component parts, in the region served by 
                the revolving loan fund;
                    ``(E) how the State will target the provision of 
                loans under the Program to manufacturers located in 
                regions characterized by high unemployment and sudden 
                and severe economic dislocation, in particular where 
                mass layoffs have resulted in a precipitous increase in 
                unemployment;
                    ``(F) the availability of a skilled manufacturing 
                workforce in the region served by the revolving loan 
                fund and the capacity of the region's workforce and 
                education systems to provide pathways for unemployed or 
                low-income workers into skilled manufacturing 
                employment;
                    ``(G) a description of how the State will target 
                loans to small or medium-sized manufacturers who are--
                            ``(i) manufacturers of automobile 
                        components; and
                            ``(ii) either--
                                    ``(I) increasing the energy 
                                efficiency of their manufacturing 
                                facilities; or
                                    ``(II) retooling to manufacture 
                                clean energy products or energy 
                                efficient products, including 
                                manufacturing components to improve the 
                                compliance of an automobile with fuel 
                                economy standards prescribed under 
                                section 32902 of title 49, United 
                                States Code;
                    ``(H) a description of how the State will use the 
                loan fund to achieve the earliest and maximum 
                greenhouse gas emission reductions within a reasonable 
                period of time per dollar invested and with the fewest 
                non-greenhouse gas environmental impacts; and
                    ``(I) such other factors as the Secretary considers 
                appropriate to ensure that grants awarded under the 
                Program effectively and efficiently achieve the 
                purposes described in subsection (a).
    ``(e) Revolving Loan Funds.--
            ``(1) In general.--A State receiving a grant under the 
        Program shall establish, maintain, and administer a revolving 
        loan fund in accordance with this subsection.
            ``(2) Deposits.--A revolving loan fund shall consist of the 
        following:
                    ``(A) Amounts from grants awarded under this 
                section.
                    ``(B) All amounts held or received by the State 
                incident to the provision of loans described in 
                subsection (f), including all collections of principal 
                and interest.
            ``(3) Expenditures.--Amounts in the revolving loan fund 
        shall be available for the provision and administration of 
        loans in accordance with subsection (f).
            ``(4) Limitation.--No funds provided pursuant to this 
        section may be leveraged through use of tax-exempt bonding 
        authority by a State or a political subdivision of a State.
    ``(f) Loans.--
            ``(1) In general.--A State receiving a grant under this 
        section shall use the amount in the revolving loan fund to 
        provide loans to small and medium-sized manufacturers as 
        described in subsection (c)(1).
            ``(2) Loan terms and conditions.--The following shall apply 
        with respect to loans provided under paragraph (1):
                    ``(A) Terms.--Loans shall have a term determined by 
                the State receiving the grant as follows:
                            ``(i) For fixed assets, the term of the 
                        loan shall not exceed the useful life of the 
                        asset and shall be less than 15 years.
                            ``(ii) For working capital, the term of the 
                        loan shall not exceed 36 months.
                    ``(B) Interest rates.--Loans shall bear an interest 
                rate determined by the State receiving the grant as 
                follows:
                            ``(i) The interest rate shall enable the 
                        loan recipient to accomplish the activities 
                        described in subparagraphs (A) and (B) of 
                        subsection (c)(1).
                            ``(ii) The interest rate may be set below-
                        market interest rates.
                            ``(iii) The interest rate may not be less 
                        than zero percent.
                            ``(iv) The interest rate may not exceed the 
                        current prime rate plus 500 basis points.
                    ``(C) Description and budget for use of loan 
                funds.--Each recipient of a loan from a State under the 
                Program shall develop and submit to the State and the 
                Secretary a description and budget for the use of loan 
                amounts, including a description of the following:
                            ``(i) Any new business expected to be 
                        developed with the loan.
                            ``(ii) Any improvements to manufacturing 
                        operations to be developed with the loan.
                            ``(iii) Any technology expected to be 
                        commercialized with the loan.
                    ``(D) Priority in review and preference in 
                selection for certain loan applicants.--
                            ``(i) Review.--In reviewing applications 
                        submitted by small or medium-sized 
                        manufacturers for a loan, a recipient of a 
                        grant under the Program shall give priority to 
                        small or medium-sized manufacturers described 
                        in clause (iii).
                            ``(ii) Selection.--In selecting small or 
                        medium-sized manufacturers to receive a loan, a 
                        recipient of a grant under the Program shall 
                        give preference to small or medium-sized 
                        manufacturers described in clause (iii).
                            ``(iii) Priority and preferred small or 
                        medium-sized manufacturers.--A small or medium-
                        sized manufacturer described in this clause is 
                        a manufacturer that--
                                    ``(I) is certified by a Hollings 
                                Manufacturing Extension Center or a 
                                manufacturing-related local 
                                intermediary designated by the 
                                Secretary for purposes of providing 
                                such certification; or
                                    ``(II) provides individuals 
                                employed at the manufacturing 
                                facilities of the manufacturer--
                                            ``(aa) pay in amounts that 
                                        are, on average, equal to or 
                                        more than the average wage of 
                                        an individual working in a 
                                        manufacturing facility in the 
                                        State; and
                                            ``(bb) health benefits.
                            ``(iv) Certification by hollings 
                        manufacturing extension center.--A Hollings 
                        Manufacturing Extension Center or other entity 
                        designated by the Secretary for purposes of 
                        providing certification under clause (iii)(I) 
                        shall only certify applications for a loan 
                        after carrying out a qualitative and 
                        quantitative review of the applicant's business 
                        strategy, manufacturing operations, and 
                        technological ability to contribute to the 
                        purposes described in subsection (a).
                    ``(E) Repayment upon relocation outside united 
                states.--
                            ``(i) In general.--If a person receives a 
                        loan under paragraph (1) to finance the cost of 
                        reequipping, expanding, or establishing a 
                        manufacturing facility as described in 
                        subsection (c)(1)(A) or to reduce the energy 
                        intensity of a manufacturing facility and such 
                        person relocates the production activities of 
                        such manufacturing facility outside the United 
                        States during the term of the loan, the 
                        recipient shall repay such loan in full with 
                        interest as described in clause (ii) and for a 
                        duration described in clause (iii).
                            ``(ii) Payment of interest.--Any amount 
                        owed by the recipient of a loan under paragraph 
                        (1) who is required to repay the loan under 
                        clause (i) shall bear interest at a penalty 
                        rate determined by the Secretary to deter 
                        recipients of loans under paragraph (1) from 
                        relocating production activities as described 
                        in clause (i).
                            ``(iii) Period of repayment.--Repayment of 
                        a loan under clause (i) shall be for a duration 
                        determined by the Secretary.
                    ``(F) Compliance with wage rate requirements.--Each 
                recipient of a loan shall undertake and agree to 
                incorporate or cause to be incorporated into all 
                contracts for construction, alteration or repair, which 
                are paid for in whole or in part with funds obtained 
                pursuant to such loan, a requirement that all laborers 
                and mechanics employed by contractors and 
                subcontractors performing construction, alteration or 
                repair shall be paid wages at rates not less than those 
                determined by the Secretary of Labor, in accordance 
                with subchapter IV of chapter 31 of title 40, United 
                States Code (known as the `Davis-Bacon Act'), to be 
                prevailing for the corresponding classes of laborers 
                and mechanics employed on projects of a character 
                similar to the contract work in the same locality in 
                which the work is to be performed. The Secretary of 
                Labor shall have, with respect to the labor standards 
                specified in this subparagraph, the authority and 
                functions set forth in Reorganization Plan Numbered 14 
                of 1950 (15 Fed. Reg. 3176; 64 Stat. 1267) and section 
                3145 of title 40, United States Code.
                    ``(G) Annual reports by loan recipients.--Each 
                recipient of a loan issued by a State under paragraph 
                (1) shall, not less frequently than once each year 
                during the term of the loan, submit to such State a 
                report containing such information as the Secretary may 
                specify for purposes of the Program, including 
                information that the Secretary can use to determine 
                whether a recipient of a loan is required to repay the 
                loan under subparagraph (E).
            ``(3) Annual reports by grant recipients.--Each recipient 
        of a grant under the Program shall, not less frequently than 
        once each year, submit to the Secretary a report on the impact 
        of each loan issued by the State under the Program and the 
        aggregate impact of all loans so issued, including the 
        following:
                    ``(A) The sales increased or retained.
                    ``(B) Cost savings or costs avoided.
                    ``(C) Additional investment encouraged.
                    ``(D) Jobs created or retained.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000,000 for each of 
fiscal years 2010 and 2011.''.

SEC. 247. CLEAN ENERGY AND EFFICIENCY MANUFACTURING PARTNERSHIPS.

    (a) Hollings Manufacturing Partnership Program.--Section 25(b) of 
the National Institute of Standards and Technology Act (15 U.S.C. 
278k(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) the establishment of a clean energy manufacturing 
        supply chain initiative--
                    ``(A) to support manufacturers in their 
                identification of and diversification to new markets, 
                including support for manufacturers transitioning to 
                the use of clean energy supply chains;
                    ``(B) to assist manufacturers improve their 
                competitiveness by reducing energy intensity and 
                greenhouse gas production, including the use of energy 
                intensive feedstocks;
                    ``(C) to increase adoption and implementation of 
                innovative manufacturing technologies;
                    ``(D) to coordinate and leverage the expertise of 
                the National Laboratories and Technology Centers and 
                the Industrial Assessment Centers of the Department of 
                Energy to meet the needs of manufacturers; and
                    ``(E) to identify, assist, and certify 
                manufacturers seeking loans under section 27(e)(1).''.
    (b) Reduction in Cost Share Requirements.--Section 25(c) of such 
Act (15 U.S.C. 278k(c)) is amended--
            (1) in paragraph (1), by inserting ``or as provided in 
        paragraph (5)'' after ``not to exceed six years'';
            (2) in paragraph (3)(B), by striking ``not less than 50 
        percent of the costs incurred for the first 3 years and an 
        increasing share for each of the last 3 years'' and inserting 
        ``50 percent of the costs incurred or such lesser percentage of 
        the costs incurred as determined appropriate by the Secretary 
        by rule''; and
            (3) in paragraph (5)--
                    (A) by striking ``at declining levels'';
                    (B) by striking ``one third'' and inserting ``50 
                percent''; and
                    (C) by inserting ``, or such lesser percentage as 
                determined appropriate by the Secretary by rule,'' 
                after ``maintenance costs''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Commerce for the Hollings 
Manufacturing Partnership Program authorized under sections 25 of the 
National Institute of Standards and Technology Act (15 U.S.C. 278k) and 
for the provision of assistance under section 26 of such Act (15 U.S.C. 
278l)--
            (1) $200,000,000 for fiscal year 2010;
            (2) $250,000,000 for fiscal year 2011;
            (3) $300,000,000 for fiscal year 2012;
            (4) $350,000,000 for fiscal year 2013; and
            (5) $400,000,000 for fiscal year 2014.

SEC. 248. TECHNICAL AMENDMENTS.

    (a) Amendment to National Institute of Standards and Technology 
Act.--Section 25 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k(b)) is amended--
            (1) in subsection (a), by striking ``(hereafter in this Act 
        referred to as the `Centers')''; and
            (2) by adding at the end the following:
    ``(g) Designation.--
            ``(1) Hollings manufacturing partnership program.--The 
        program under this section shall be known as the `Hollings 
        Manufacturing Partnership Program'.
            ``(2) Hollings manufacturing extension centers.--The 
        Regional Centers for the Transfer of Manufacturing Technology 
        created and supported under subsection (a) shall be known as 
        the `Hollings Manufacturing Extension Centers' (in this Act 
        referred to as the `Centers').''.
    (b) Amendment to Consolidated Appropriations Act, 2005.--Division B 
of title II of the Consolidated Appropriations Act, 2005 (Public Law 
108-447; 118 Stat. 2879; 15 U.S.C. 278k note) is amended under the 
heading ``industrial technology services'' by striking ``2007: Provided 
further, That'' and all that follows through ``Extension Centers.'' and 
inserting ``2007.''.

   Subtitle E--Improvements in Energy Savings Performance Contracting

SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Competition Requirements for Task or Delivery Orders Under 
Energy Savings Performance Contracts.--
            (1) Competition requirements.--Subsection (a) of section 
        801 of the National Energy Conservation Policy Act (42 U.S.C. 
        8287(a)) is amended by adding at the end the following 
        paragraph:
    ``(3)(A) The head of a Federal agency may issue a task or delivery 
order under an energy savings performance contract by--
            ``(i) notifying all contractors that have received an award 
        under such contract that the agency proposes to discuss energy 
        savings performance services for some or all of its facilities 
        and, following a reasonable period of time to provide a 
        proposal in response to the notice, soliciting an expression of 
        interest in performing site surveys or investigations and 
        feasibility designs and studies and the submission of 
        qualifications from such contractors, and including in such 
        notice summary information concerning energy use for any 
        facilities that the agency has specific interest in including 
        in such contract;
            ``(ii) reviewing all expressions of interest and 
        qualifications submitted pursuant to the notice under clause 
        (i);
            ``(iii) selecting two or more contractors (from among those 
        reviewed under clause (ii)) to conduct discussions concerning 
        the contractors' respective qualifications to implement 
        potential energy conservation measures, including requesting 
        references demonstrating experience on similar efforts and the 
        resulting energy savings of such similar efforts, and providing 
        an opportunity for a post-award debriefing to all contractors 
        that submitted expressions of interest and qualifications under 
        clause (ii) pursuant to the notice;
            ``(iv) selecting and authorizing--
                    ``(I) more than one contractor (from among those 
                selected under clause (iii)) to conduct site surveys, 
                investigations, feasibility designs and studies or 
                similar assessments for the energy savings performance 
                contract services (or for discrete portions of such 
                services), for the purpose of allowing each such 
                contractor to submit a firm, fixed-price proposal to 
                implement specific energy conservation measures; or
                    ``(II) one contractor (from among those selected 
                under clause (iii)) to conduct a site survey, 
                investigation, a feasibility design and study or 
                similar for the purpose of allowing the contractor to 
                submit a firm, fixed-price proposal to implement 
                specific energy conservation measures;
            ``(v) negotiating a task or delivery order for energy 
        savings performance contracting services with the contractor or 
        contractors selected under clause (iv) based on the energy 
        conservation measures identified; and
            ``(vi) issuing a task or delivery order for energy savings 
        performance contracting services to such contractor or 
        contractors.
    ``(B) The issuance of a task or delivery order for energy savings 
performance contracting services pursuant to subparagraph (A) is deemed 
to satisfy the task and delivery order competition requirements in 
section 2304c(d) of title 10, United States Code, and section 303J(d) 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)).
    ``(C) The Secretary may issue guidance as necessary to agencies 
issuing task or delivery orders pursuant to subparagraph (A).''.
            (2) Effective date.--The amendment made by paragraph (1) is 
        inapplicable to task or delivery orders issued before the date 
        of enactment of this section.
    (b) Inclusion of Thermal Renewable Energy.--Section 203 of the 
Energy Policy Act of 2005 (42 U.S.C. 15852) is amended--
            (1) in subsection (a), by striking ``electric''; and
            (2) in subsection (b)(2), by inserting ``or thermal'' after 
        ``means electric''.
    (c)  Credit for Renewable Energy Produced and Used on Site.--
Subsection (c) of section 203 of the Energy Policy Act of 2005 (42 
U.S.C. 15852) is amended to read as follows:
    ``(c) Calculation.--Renewable energy produced at a Federal 
facility, on Federal lands, or on Indian lands (as defined in title 
XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.)) shall 
be calculated separately from renewable energy consumed at a Federal 
facility, and each may be used to comply with the consumption 
requirement under subsection (a).''.
    (d) Financing Flexibility.--Section 801(a)(2)(E) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(E)) is amended by 
striking ``In'' and inserting ``Notwithstanding any other provision of 
law, in''.

                    Subtitle F--Public Institutions

SEC. 261. PUBLIC INSTITUTIONS.

    Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 
6371h-1) is amended--
            (1) in subsection (a)(5), by striking ``or a designee'' and 
        inserting ``an Indian tribe, a not-for-profit hospital or not-
        for-profit inpatient health care facility, or a designated 
        agent'';
            (2) in subsection (c)(1), by striking subparagraph (C);
            (3) in subsection (f)(3)(A), by striking ``$1,000,000'' and 
        inserting ``$2,500,000''; and
            (4) in subsection (i)(1), by striking ``$250,000,000 for 
        each of fiscal years 2009 through 2013'' and inserting 
        ``$250,000,000 for each of fiscal years 2010 through 2015''.

SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.

    Section 545(b)(3) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17155(b)(3)) is amended--
            (1) by striking ``Indian tribe may use'' and all that 
        follows through ``for administrative expenses'' and inserting 
        ``Indian tribe may use for administrative expenses'';
            (2) by striking subparagraphs (B) and (C);
            (3) by redesignating the remaining clauses (i) and (ii) as 
        subparagraphs (A) and (B), respectively and adjusting the 
        margin of those subparagraphs accordingly; and
            (4) by striking the semicolon at the end and inserting a 
        period.

SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.

    (a) Section 541(3)(A) of the Energy Independence and Security Act 
of 2007 is amended in clause (i) by striking ``and'' at the end of 
subclause (II), in clause (ii) by striking the period at the end of 
subclause (II) and inserting ``; or'', and by inserting the following 
new clause (iii):
                    ``(iii) a group of adjacent, contiguous, or 
                geographically proximate units of local government that 
                reach agreement to act jointly for purposes of this 
                section and that represent a combined population of not 
                less than 35,000.''.
    (b) Section 541(3)(B) of the Energy Independence and Security Act 
of 2007 is amended in clause (i) by striking ``or'', in clause (ii) by 
striking the period at the end and inserting ``; or'', and by inserting 
the following new clause (iii):
                    ``(iii) a group of adjacent, contiguous, or 
                geographically proximate units of local government that 
                reach agreement to act jointly for purposes of this 
                section and that represent a combined population of not 
                less than 50,000.''.

SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.

    (a) In General.--The Secretary of Energy is authorized to make 
grants to private, nonprofit, mission-driven community development 
organizations including community development corporations and 
community development financial institutions to provide financing to 
businesses and projects that improve energy efficiency; identify and 
develop alternative, renewable, and distributed energy supplies; 
provide technical assistance and promote job and business opportunities 
for low-income residents; and increase energy conservation in low 
income rural and urban communities.
    (b) Grants.--The purpose of such grants is to increase the flow of 
capital and benefits to low income communities, minority-owned and 
woman-owned businesses and entrepreneurs and other projects and 
activities located in low income communities in order to reduce 
environmental degradation, foster energy conservation and efficiency 
and create job and business opportunities for local residents. The 
Secretary may make grants on a competitive basis for--
            (1) investments that develop alternative, renewable, and 
        distributed energy supplies;
            (2) capitalizing loan funds that lend to energy efficiency 
        projects and energy conservation programs;
            (3) technical assistance to plan, develop, and manage an 
        energy efficiency financing program; and
            (4) technical and financial assistance to assist small-
        scale businesses and private entities develop new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (c) Authorization of Appropriations.--For the purposes of this 
section there is authorized to be appropriated $50,000,000 for each of 
the fiscal years 2010 through 2015.

SEC. 265. CONSUMER BEHAVIOR RESEARCH.

    (a) In General.--The Secretary of Energy is authorized to establish 
a research program to identify the factors affecting consumer actions 
to conserve energy and make improvements in energy efficiency. Through 
the program the Secretary will make grants to public and private 
institutions of higher education to study the effects of consumer 
behavior on total energy use; potential energy savings from changes in 
consumption habits; the ability to reduce greenhouse gas emissions 
through changes in energy consumption habits; increase public awareness 
of Federal climate adaptation and mitigation programs; and the 
potential for alterations in consumer behavior to further American 
energy independence. Grants may also fund projects that evaluate or 
inform public knowledge of the effects of energy consumption habits on 
these topics.
    (b) Grants.--The purpose of the program is to provide grants to 
public and private institutions of higher education to carry out 
projects which will improve understanding of the effects of consumer 
behavior on energy consumption and conservation. The Secretary shall 
make grants on a competitive basis for--
            (1) studies of the effects of consumer habits on energy 
        consumption and conservation;
            (2) development of strategies that communicate the 
        importance of energy efficiency and conservation to consumers;
            (3) identification of best practices to improve consumer 
        energy use habits;
            (4) education programs that inform consumers about the 
        implications of consumption habits on energy use and climate 
        change;
            (5) evaluation of the effectiveness of programs designed to 
        promote public awareness of Federal Government climate 
        adaptation and mitigation activities; and
            (6) other projects that advance the mission of the program.
    (c) Report.--The Secretary of Energy shall provide Congress with a 
report on progress towards establishing the program within 120 days 
after the date of enactment of this Act.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

                       Subtitle G--Miscellaneous

SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended to read as follows:

``SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS 
              TECHNOLOGIES.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of the American Clean Energy and Security Act of 2009, each 
Federal agency shall collaborate with the Director of the Office of 
Management and Budget (referred to in this section as the `Director') 
to create an implementation strategy, including best practices and 
measurement and verification techniques, for the purchase and use of 
energy efficient information and communications technologies and 
practices. Wherever possible, existing standards, specifications, 
performance metrics, and best management practices that have been or 
are being developed in open collaboration and with broad stakeholder 
input and review should be incorporated. In addition, agency strategies 
shall be flexible, cost-effective, and based on the specific operating 
requirements and statutory mission of each agency.
    ``(b) Energy Efficient Information and Communications 
Technologies.--In developing an implementation strategy, each agency 
shall--
            ``(1) consider information and communications technologies 
        and infrastructure, including, but not limited to, advanced 
        metering infrastructure, information and communications 
        technology services and products, efficient data center 
        strategies, applications modernization and rationalization, 
        building systems energy efficiency, and telework; and
            ``(2) ensure that agencies are eligible to realize the 
        savings and rewards brought about through increased 
        efficiencies.
    ``(c) Performance Goals.--Not later than 6 months after the date of 
enactment of the American Clean Energy and Security Act of 2009, the 
Director shall establish performance goals for evaluating the efforts 
of the agencies in improving the maintenance, purchase and use of 
energy efficiency of information and communications technology systems. 
These performance goals should measure information technology costs 
over a specific time horizon (3 to 5 years), providing a complete 
picture of all costs, including energy.
    ``(d) Report.--Not later than 18 months after the date of enactment 
of the American Clean Energy and Security Act of 2009, and annually 
thereafter, the Director shall submit a report to Congress on--
            ``(1) the progress of each agency in reducing energy use 
        through its implementation strategy; and
            ``(2) new and emerging technologies that would help achieve 
        increased energy efficiency.''.

SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.

    (a) Goals.--The energy efficiency goals of the United States are--
            (1) to achieve an improvement in the overall energy 
        productivity of the United States (measured in gross domestic 
        product per unit of energy input) of at least 2.5 percent per 
        year by the year 2012; and
            (2) to maintain that annual rate of improvement each year 
        through 2030.
    (b) Strategic Plan.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy (referred to in 
        this section as the ``Secretary''), in cooperation with the 
        Administrator and the heads of other appropriate Federal 
        agencies, shall develop a strategic plan to achieve the 
        national goals for improvement in energy productivity 
        established under subsection (a).
            (2) Public input and comment.--The Secretary shall develop 
        the plan in a manner that provides appropriate opportunities 
        for public input and comment.
    (c) Plan Contents.--The strategic plan shall--
            (1) identify future regulatory, funding, and policy 
        priorities that would assist the United States in meeting the 
        national goals;
            (2) include energy savings estimates for each sector; and
            (3) include data collection methodologies and compilations 
        used to establish baseline and energy savings data.
    (d) Plan Updates.--
            (1) In general.--The Secretary shall--
                    (A) update the strategic plan biennially; and
                    (B) include the updated strategic plan in the 
                national energy policy plan required by section 801 of 
                the Department of Energy Organization Act (42 U.S.C. 
                7321).
            (2) Contents.--In updating the plan, the Secretary shall--
                    (A) report on progress made toward implementing 
                efficiency policies to achieve the national goals 
                established under subsection (a); and
                    (B) verify, to the maximum extent practicable, 
                energy savings resulting from the policies.
    (e) Report to Congress and the Public.--The Secretary shall submit 
to Congress, and make available to the public, the initial strategic 
plan developed under subsection (b) and each updated plan.

SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.

    (a) Definitions.--In this section:
            (1) Affiliated island.--The term ``affiliated island'' 
        means--
                    (A) the Commonwealth of Puerto Rico;
                    (B) Guam;
                    (C) American Samoa;
                    (D) the Commonwealth of the Northern Mariana 
                Islands;
                    (E) the Federated States of Micronesia;
                    (F) the Republic of the Marshall Islands;
                    (G) the Republic of Palau; and
                    (H) the United States Virgin Islands.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy (acting through the Assistant Secretary of Energy 
        Efficiency and Renewable Energy), in consultation with the 
        Secretary of the Interior and the Secretary of State.
            (3) Team.--The term ``team'' means the team established by 
        the Secretary under subsection (b).
    (b) Establishment.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall assemble a team of 
technical, policy, and financial experts to address the energy needs of 
each affiliated island--
            (1) to reduce the reliance and expenditure of each 
        affiliated island on imported fossil fuels;
            (2) to increase the use by each affiliated island of 
        indigenous, nonfossil fuel energy sources;
            (3) to improve the performance of the energy infrastructure 
        of the affiliated island through projects--
                    (A) to improve the energy efficiency of power 
                generation, transmission, and distribution; and
                    (B) to increase consumer energy efficiency;
            (4) to improve the performance of the energy infrastructure 
        of each affiliated island through enhanced planning, education, 
        and training;
            (5) to adopt research-based and public-private partnership-
        based approaches as appropriate;
            (6) to stimulate economic development and job creation; and
            (7) to enhance the engagement by the Federal Government in 
        international efforts to address island energy needs.
    (c) Duties of Team.--
            (1) Energy action plans.--
                    (A) In general.--In accordance with subparagraph 
                (B), the team shall provide technical, programmatic, 
                and financial assistance to each utility of each 
                affiliated island, and the government of each 
                affiliated island, as appropriate, to develop and 
                implement an energy Action Plan for each affiliated 
                island to reduce the reliance of each affiliated island 
                on imported fossil fuels through increased efficiency 
                and use of indigenous clean-energy resources.
                    (B) Requirements.--Each Action Plan described in 
                subparagraph (A) for each affiliated island shall 
                require and provide for--
                            (i) the conduct of 1 or more studies to 
                        assess opportunities to reduce fossil fuel use 
                        through--
                                    (I) the improvement of the energy 
                                efficiency of the affiliated island; 
                                and
                                    (II) the increased use by the 
                                affiliated island of indigenous clean-
                                energy resources;
                            (ii) the identification and implementation 
                        of the most cost-effective strategies and 
                        projects to reduce the dependence of the 
                        affiliated island on fossil fuels;
                            (iii) the promotion of education and 
                        training activities to improve the capacity of 
                        the local utilities of the affiliated island, 
                        and the government of the affiliated island, as 
                        appropriate, to plan for, maintain, and operate 
                        the energy infrastructure of the affiliated 
                        island through the use of local or regional 
                        institutions, as appropriate;
                            (iv) the coordination of the activities 
                        described in clause (iii) to leverage the 
                        expertise and resources of international 
                        entities, the Department of Energy, the 
                        Department of the Interior, and the regional 
                        utilities of the affiliated island;
                            (v) the identification, and development, as 
                        appropriate, of research-based and private-
                        public, partnership approaches to implement the 
                        Action Plan; and
                            (vi) any other component that the Secretary 
                        determines to be necessary to reduce 
                        successfully the use by each affiliated island 
                        of fossil fuels.
            (2) Reports to secretary.--Not later than 1 year after the 
        date on which the Secretary establishes the team and biennially 
        thereafter, the team shall submit to the Secretary a report 
        that contains a description of the progress of each affiliated 
        island in--
                    (A) implementing the Action Plan of the affiliated 
                island developed under paragraph (1)(A); and
                    (B) reducing the reliance of the affiliated island 
                on fossil fuels.
    (d) Use of Regional Utility Organizations.--To provide expertise to 
affiliated islands to assist the affiliated islands in meeting the 
purposes of this section, the Secretary shall consider--
            (1) including regional utility organizations in the 
        establishment of the team; and
            (2) providing assistance through regional utility 
        organizations.
    (e) Annual Reports to Congress.--Not later than 30 days after the 
date on which the Secretary receives a report submitted by the team 
under subsection (c)(2), the Secretary shall submit to the appropriate 
committees of Congress a report that contains a summary of the report 
of the team.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.

    (a) EPA Study.--The Administrator shall conduct a study to 
determine the feasibility of establishing a national program for 
measuring, reporting, publicly disclosing, and labeling products or 
materials sold in the United States for their carbon content, and 
shall, not later than 18 months after the date of enactment of this 
Act, transmit a report to Congress which shall include the following:
            (1) A determination of whether a national product carbon 
        disclosure program and labeling program would be effective in 
        achieving the intended goals of achieving greenhouse gas 
        reductions and an examination of existing programs globally and 
        their strengths and weaknesses.
            (2) Criteria for identifying and prioritizing sectors and 
        products and processes that should be covered in such program 
        or programs.
            (3) An identification of products, processes, or sectors 
        whose inclusion could have a substantial carbon impact 
        (prioritizing industrial products such as iron and steel, 
        aluminum, cement, chemicals, and paper products, and also 
        including food, beverage, hygiene, cleaning, household 
        cleaners, construction, metals, clothing, semiconductor, and 
        consumer electronics).
            (4) Suggested methodology and protocols for measuring the 
        carbon content of the products across the entire carbon 
        lifecycle of such products for use in a carbon disclosure 
        program and labeling program.
            (5) A review of existing greenhouse gas product accounting 
        standards, methodologies, and practices including the 
        Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and 
        Publically Available Specification 2050, and including a review 
        of the strengths and weaknesses of each.
            (6) A survey of secondary databases including the 
        Manufacturing Energy Consumption Survey and evaluate the 
        quality of data for use in a product carbon disclosure program 
        and product carbon labeling program and an identification of 
        gaps in the data relative to the potential purposes of a 
        national product carbon disclosure program and product carbon 
        labeling program and development of recommendations for 
        addressing these data gaps.
            (7) An assessment of the utility of comparing products and 
        the appropriateness of product carbon standards.
            (8) An evaluation of the information needed on a label for 
        clear and accurate communication, including what pieces of 
        quantitative and qualitative information needs to be disclosed.
            (9) An evaluation of the appropriate boundaries of the 
        carbon lifecycle analysis for different sectors and products.
            (10) An analysis of whether default values should be 
        developed for products whose producer does not participate in 
        the program or does not have data to support a disclosure or 
        label and determine best ways to develop such default values.
            (11) A recommendation of certification and verification 
        options necessary to assure the quality of the information and 
        avoid greenwashing or the use of insubstantial or meaningless 
        environmental claims to promote a product.
            (12) An assessment of options for educating consumers about 
        product carbon content and the product carbon disclosure 
        program and product carbon labeling program.
            (13) An analysis of the costs and timelines associated with 
        establishing a national product carbon disclosure program and 
        product carbon labeling program, including options for a phased 
        approach. Costs should include those for businesses associated 
        with the measurement of carbon footprints and those associated 
        with creating a product carbon label and managing and operating 
        a product carbon labeling program, and options for minimizing 
        these costs.
            (14) An evaluation of incentives (such as financial 
        incentives, brand reputation, and brand loyalty) to determine 
        whether reductions in emissions can be accelerated through 
        encouraging more efficient manufacturing or by encouraging 
        preferences for lower-emissions products to substitute for 
        higher-emissions products whose level of performance is no 
        better.
    (b) Development of National Carbon Disclosure Program.--Upon 
conclusion of the study, and not more than 36 months after the date of 
enactment of this Act, the Administrator shall establish a national 
product carbon disclosure program, participation in which shall be 
voluntary, and which may involve a product carbon label with broad 
applicability to the wholesale and consumer markets to enable and 
encourage knowledge about carbon content by producers and consumers and 
to inform efforts to reduce energy consumption (carbon dioxide 
equivalent emissions) nationwide. In developing such a program, the 
Administrator shall--
            (1) consider the results of the study conducted under 
        subsection (a);
            (2) consider existing and planned programs and proposals 
        and measurement standards (including the Publicly Available 
        Specification 2050, standards to be developed by the World 
        Resource Institute/World Business Council for Sustainable 
        Development, the International Standards Organization, and the 
        bill AB19 pending in the California legislature);
            (3) consider the compatibility of a national product carbon 
        disclosure program with existing programs;
            (4) utilize incentives and other means to spur the adoption 
        of product carbon disclosure and product carbon labeling;
            (5) develop protocols and parameters for a product carbon 
        disclosure program, including a methodology and formula for 
        assessing, verifying, and potentially labeling a product's 
        greenhouse gas content, and for data quality requirements to 
        allow for product comparison;
            (6) create a means to--
                    (A) document best practices;
                    (B) ensure clarity and consistency;
                    (C) work with suppliers, manufacturers, and 
                retailers to encourage participation;
                    (D) ensure that protocols are consistent and 
                comparable across like products; and
                    (E) evaluate the effectiveness of the program;
            (7) make publicly available information on product carbon 
        content to ensure transparency;
            (8) provide for public outreach, including a consumer 
        education program to increase awareness;
            (9) develop training and education programs to help 
        businesses learn how to measure and communicate their carbon 
        footprint and easy tools and templates for businesses to use to 
        reduce cost and time to measure their products' carbon 
        lifecycle;
            (10) consult with the Secretary of Energy, the Secretary of 
        Commerce, the Federal Trade Commission, and other Federal 
        agencies, as necessary;
            (11) gather input from stakeholders through consultations, 
        public workshops or hearings with representatives of consumer 
        product manufacturers, consumer groups, and environmental 
        groups;
            (12) utilize systems for verification and product 
        certification that will ensure that claims manufacturers make 
        about their products are valid;
            (13) create a process for reviewing the accuracy of product 
        carbon label information and protecting the product carbon 
        label in the case of a change in the product's energy source, 
        supply chain, ingredients, or other factors, and specify the 
        frequency to which data should be updated; and
            (14) develop a standardized, easily understandable carbon 
        label, if appropriate, and create a process for responding to 
        inaccuracies and misuses of such a label.
    (c) Report to Congress.--Not later than 5 years after the program 
is established pursuant to subsection (b), the Administrator shall 
report to Congress on the effectiveness and impact of the program, the 
level of voluntary participation, and any recommendations for 
additional measures.
    (d) Definitions.--As used in this section--
            (1) the term ``carbon content'' means the amount of 
        greenhouse gas emissions and their warming impact on the 
        atmosphere expressed in carbon dioxide equivalent associated 
        with a product's value chain;
            (2) the term ``carbon footprint'' means the level of 
        greenhouse gas emissions produced by a particular activity, 
        service, or entity; and
            (3) the term ``carbon lifecycle'' means the greenhouse gas 
        emissions that are released as part of the processes of 
        creating, producing, processing or manufacturing, modifying, 
        transporting, distributing, storing, using, recycling, or 
        disposing of goods and services.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $5,000,000 for the study required by 
subsection (a) and $25,000,000 for each of fiscal years 2010 through 
2025 for the program required under subsection (b).

SEC. 275. INDUSTRIAL ENERGY EFFICIENCY EDUCATION AND TRAINING 
              INITIATIVE.

    (a) In General.--The Secretary of Energy shall carry out a national 
education and awareness program for the purpose of informing building, 
facility, and industrial plant owners and managers and decisionmakers, 
government leaders, and industry leaders about the large energy-saving 
potential of greater use of mechanical insulation, and other benefits.
    (b) Purpose and Goals.--
            (1) Purpose.--The purpose of the initiative shall be to 
        increase the energy efficiency of the commercial and industrial 
        sectors through an ongoing program that will include--
                    (A) education and training sessions;
                    (B) Web-based information; and
                    (C) advertising.
            (2) Goals.--The goals of the initiative shall be to--
                    (A) educate and motivate commercial building owners 
                and industrial facility managers to utilize mechanical 
                insulation in new and existing facilities;
                    (B) preserve and create jobs while reducing energy 
                and greenhouse gas emissions;
                    (C) create a safer working environment and make 
                businesses more competitive in a global economy; and
                    (D) motivate and empower the industry to make 
                better use of mechanical insulation through awareness, 
                education, and training.
    (c) Report.--Not later than July 1, 2013, the Secretary shall 
submit to Congress a report describing the extent by which the 
initiative has been enacted and the actual and projected effectiveness 
of the program under this section, including the energy efficiency, 
greenhouse gas emissions reductions, cost savings, and safety benefits 
at manufacturing facilities, power plants, refineries, hospitals, 
universities, government buildings, and other commercial and industrial 
locations.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated $3,500,000 for each of fiscal years 2010 through 2014 to 
carry out this section.   The Secretary may enter into a cooperative 
agreement, including grant funding, with an industry association and 
union working collaboratively and having expertise on the installation, 
maintenance, measure of efficiencies and standards, and certification 
of mechanical insulation in buildings and facilities.
    (e) Termination of Authority.--The program carried out under this 
section shall terminate on December 31, 2014.

SEC. 276. SENSE OF CONGRESS.

    It is the sense of Congress that the United States should--
            (1) continue to actively promote, within the International 
        Civil Aviation Organization, the development of a global 
        framework for the regulation of greenhouse gas emissions from 
        civil aircraft that recognizes the uniquely international 
        nature of the industry and treats commercial aviation 
        industries in all countries fairly; and
            (2) work with foreign governments towards a global 
        agreement that reconciles foreign carbon emissions reduction 
        programs to minimize duplicative requirements and avoids 
        unnecessary complication for the aviation industry, while still 
        achieving the environmental goals.

     Subtitle H--Green Resources for Energy Efficient Neighborhoods

SEC. 281. SHORT TITLE.

    This subtitle may be cited as the ``Green Resources for Energy 
Efficient Neighborhoods Act of 2009'' or the ``GREEN Act of 2009''.

SEC. 282. DEFINITIONS.

    For purposes of this subtitle, the following definitions shall 
apply:
            (1) Green building standards.--The term ``green building 
        standards'' means standards to require use of sustainable 
        design principles to reduce the use of nonrenewable resources, 
        encourage energy-efficient construction and rehabilitation and 
        the use of renewable energy resources, minimize the impact of 
        development on the environment, and improve indoor air quality.
            (2) HUD.--The term ``HUD'' means the Department of Housing 
        and Urban Development.
            (3) HUD assistance.--The term ``HUD assistance'' means 
        financial assistance that is awarded, competitively or 
        noncompetitively, allocated by formula, or provided by HUD 
        through loan insurance or guarantee.
            (4) Nonresidential structure.--The term ``nonresidential 
        structures'' means only nonresidential structures that are 
        appurtenant to single-family or multifamily housing residential 
        structures, or those that are funded by the Secretary of 
        Housing and Urban Development through the HUD Community 
        Development Block Grant program.
            (5) Secretary.--The term ``Secretary'', unless otherwise 
        specified, means the Secretary of Housing and Urban 
        Development.

SEC. 283. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES 
              FOR HUD PROGRAMS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall issue such regulations as 
may be necessary to establish annual energy efficiency participation 
incentives to encourage participants in programs administered by the 
Secretary, including recipients under programs for which HUD assistance 
is provided, to achieve substantial improvements in energy efficiency.
    (b) Requirement for Appropriation of Funds.--The requirement under 
subsection (a) for the Secretary to provide annual energy efficiency 
participation incentives pursuant to the provisions of this subtitle 
shall be subject to the annual appropriation of necessary funds.

SEC. 284. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR 
              ADDITIONAL CREDIT.

    (a) Basic HUD Standard.--
            (1) Residential structures.--A residential single-family or 
        multifamily structure shall be considered to comply with the 
        energy efficiency standards under this subsection if--
                    (A) the structure complies with an energy 
                efficiency building code that has been certified as in 
                compliance with section 304 of the Energy Conservation 
                and Production Act (42 U.S.C. 6833) as amended by 
                section 201 of this Act, or a national energy 
                efficiency building code adopted pursuant to that 
                section;
                    (B) the structure complies with the applicable 
                provisions of the American Society of Heating, 
                Refrigerating, and Air-Conditioning Engineers Standard 
                90.1-2007, as such standard or successor standard is in 
                effect for purposes of this section pursuant subsection 
                (c);
                    (C) the structure complies with the applicable 
                provisions of the 2009 International Energy 
                Conservation Code, as such standard or successor 
                standard is in effect for purposes of this section 
                pursuant subsection (c);
                    (D) in the case only of an existing structure, 
                where determined cost effective, the structure has 
                undergone rehabilitation or improvements, completed 
                after the date of the enactment of this Act, and the 
                energy consumption for the structure has been reduced 
                by at least 20 percent from the previous level of 
                consumption, as determined in accordance with energy 
                audits performed both before and after any 
                rehabilitation or improvements undertaken to reduce 
                such consumption; or
                    (E) the structure complies with the applicable 
                provisions of such other energy efficiency 
                requirements, standards, checklists, or ratings systems 
                as the Secretary may adopt and apply by regulation, as 
                may be necessary, for purposes of this section for 
                specific types of residential single-family or 
                multifamily structures or otherwise, except that the 
                Secretary shall make a determination regarding whether 
                to adopt and apply any such requirements, standards, 
                checklists, or rating system for purposes of this 
                section not later than the expiration of the 180-day 
                period beginning upon the date of receipt of any 
                written request, made in such form as the Secretary 
                shall provide, for such adoption and application.
        In addition to compliance with any of subparagraphs (A) through 
        (E), the Secretary shall by regulation require, for any newly 
        constructed residential single-family or multifamily structure 
        to be considered to comply with the energy efficiency standards 
        under this subsection, that the structure have appropriate 
        electrical outlets with the facility and capacity to recharge a 
        standard electric passenger vehicle, including an electric 
        hybrid vehicle, where such vehicle would normally be parked.
            (2) Nonresidential structures.--For purposes of this 
        section, the Secretary shall identify and adopt by regulation, 
        as may be necessary, energy efficiency requirements, standards, 
        checklists, or rating systems applicable to nonresidential 
        structures that are constructed or rehabilitated with HUD 
        assistance. A nonresidential structure shall be considered to 
        comply with the energy efficiency standards under this 
        subsection if the structure complies with the applicable 
        provisions of any such energy efficiency requirements, 
        standards, checklist, or rating systems identified and adopted 
        by the Secretary pursuant to this paragraph, as such standards 
        are in effect for purposes of this section pursuant to 
        subsection (c).
            (3) Effect.--Nothing in this subsection may be construed to 
        require any structure to comply with any standard established 
        or adopted pursuant to this subsection, or identified in this 
        subsection, or to provide any benefit or credit under any 
        Federal program for any structure that complies with any such 
        standard, except to the extent that--
                    (A) any provision of law other than this subsection 
                provides a benefit or credit under a Federal program 
                for compliance with a standard established or adopted 
                pursuant to this subsection, or identified in this 
                subsection; or
                    (B) the Secretary specifically provides pursuant to 
                subsection (c) for the applicability of such standard.
    (b) Enhanced Energy Efficiency Standards for Purposes of Providing 
Additional Credit Under Certain Federally Assisted Housing Programs.--
            (1) Purpose and effect.--
                    (A) Purpose.--The purpose of this subsection is to 
                establish energy efficiency and conservation standards 
                and green building standards that--
                            (i) provide for greater energy efficiency 
                        and conservation in structures than is required 
                        for compliance with the energy efficiency 
                        standards under subsection (a) and then in 
                        effect;
                            (ii) provide for green and sustainable 
                        building standards not required by such 
                        standards; and
                            (iii) can be used in connection with 
                        Federal housing, housing finance, and 
                        development programs to provide incentives for 
                        greater energy efficiency and conservation and 
                        for green and sustainable building methods, 
                        elements, practices, and materials.
                    (B) Effect.--Nothing in this subsection may be 
                construed to require any structure to comply with any 
                standard established pursuant to this subsection or to 
                provide any benefit or credit under any Federal program 
                for any structure, except to the extent that any 
                provision of law other than this subsection provides a 
                benefit or credit under a Federal program for 
                compliance with a standard established pursuant to this 
                subsection.
            (2) Compliance.--A residential or nonresidential structure 
        shall be considered to comply with the enhanced energy 
        efficiency and conservation standards or the green building 
        standards under this subsection, to the extent that such 
        structure complies with the applicable provisions of the 
        standards under paragraph (3) or (4), respectively (as such 
        standards are in effect for purposes of this section, pursuant 
        to paragraph (7)), in a manner that is not required for 
        compliance with the energy efficiency standards under 
        subsection (a) then in effect and subject to the Secretary's 
        determination of which standards are applicable to which 
        structures.
            (3) Energy efficiency and conservation standards.--The 
        energy efficiency and conservation standards under this 
        paragraph are as follows:
                    (A) Residential structures.--With respect to 
                residential structures:
                            (i) New construction.--For new 
                        construction, the Energy Star standards 
                        established by the Environmental Protection 
                        Agency, as such standards are in effect for 
                        purposes of this subsection pursuant to 
                        paragraph (7);
                            (ii) Existing structures.--For existing 
                        structures, a reduction in energy consumption 
                        from the previous level of consumption for the 
                        structure, as determined in accordance with 
                        energy audits performed both before and after 
                        any rehabilitation or improvements undertaken 
                        to reduce such consumption, that exceeds the 
                        reduction necessary for compliance with the 
                        energy efficiency standards under subsection 
                        (a) then in effect and applicable to existing 
                        structures.
                    (B) Nonresidential structures.--With respect to 
                nonresidential structures, such energy efficiency and 
                conservation requirements, standards, checklists, or 
                rating systems for nonresidential structures as the 
                Secretary shall identify and adopt by regulation, as 
                may be necessary, for purposes of this paragraph.
            (4) Green building standards.--The green building standards 
        under this paragraph are as follows:
                    (A) The national Green Communities criteria 
                checklist for residential construction that provides 
                criteria for the design, development, and operation of 
                affordable housing, as such checklist or successor 
                checklist is in effect for purposes of this section 
                pursuant to paragraph (7).
                    (B) The gold certification level for the LEED for 
                New Construction rating system, the LEED for Homes 
                rating system, the LEED for Core and Shell rating 
                system, as applicable, as such systems or successor 
                systems are in effect for purposes of this section 
                pursuant to paragraph (7).
                    (C) The Green Globes assessment and rating system 
                of the Green Buildings Initiative.
                    (D) For manufactured housing, energy star rating 
                with respect to fixtures, appliances, and equipment in 
                such housing, as such standard or successor standard is 
                in effect for purposes of this section pursuant to 
                paragraph (7).
                    (E) The National Green Building Standard.
                    (F) Any other requirements, standards, checklists, 
                or rating systems for green building or sustainability 
                as the Secretary may identify and adopt by regulation, 
                as may be necessary for purposes of this paragraph, 
                except that the Secretary shall make a determination 
                regarding whether to adopt and apply any such 
                requirements, standards, checklist, or rating system 
                for purposes of this section not later than the 
                expiration of the 180-day period beginning upon date of 
                receipt of any written request, made in such form as 
                the Secretary shall provide, for such adoption and 
                application.
            (5) Green building.--For purposes of this subsection, the 
        term ``green building'' means, with respect to standards for 
        structures, standards to require use of sustainable design 
        principles to reduce the use of nonrenewable resources, 
        minimize the impact of development on the environment, and to 
        improve indoor air quality.
            (6) Energy audits.--The Secretary shall establish standards 
        and requirements for energy audits for purposes of paragraph 
        (3)(A)(ii) and, in establishing such standards, may consult 
        with any advisory committees established pursuant to section 
        285(c)(2) of this subtitle.
            (7) Applicability and updating of standards.--
                    (A) Applicability.--Except as provided in 
                subparagraph (B), the requirements, standards, 
                checklists, and rating systems referred to in this 
                subsection that are in effect for purposes of this 
                subsection are such requirements, standards, 
                checklists, and systems are as in existence upon the 
                date of the enactment of this Act.
                    (B) Updating.--For purposes of this section, the 
                Secretary may adopt and apply by regulation, as may be 
                necessary, future amendments and supplements to, and 
                editions of, the requirements, standards, checklists, 
                and rating systems referred to in this subsection, 
                including applicable energy efficiency building codes 
                that are certified as in compliance with section 304 of 
                the Energy Conservation and Production Act (42 U.S.C. 
                6833) as amended by section 201 of this Act, or 
                national energy efficiency building codes adopted 
                pursuant to that section.
    (c) Authority of Secretary To Apply Standards to Federally Assisted 
Housing and Programs.--
            (1) HUD housing and programs.--The Secretary of Housing and 
        Urban Development may, by regulation, provide for the 
        applicability of the energy efficiency standards under 
        subsection (a) or the enhanced energy efficiency and 
        conservation standards and green building standards under 
        subsection (b), or both, with respect to any covered federally 
        assisted housing described in paragraph (3)(A) or any HUD 
        assistance, subject to minimum Federal codes or standards then 
        in effect.
            (2) Rural housing.--The Secretary of Agriculture may, by 
        regulation, provide for the applicability of the energy 
        efficiency standards under subsection (a) or the enhanced 
        energy efficiency and conservation standards and green building 
        standards under subsection (b), or both, with respect to any 
        covered federally assisted housing described in paragraph 
        (3)(B) or any assistance provided with respect to rural housing 
        by the Rural Housing Service of the Department of Agriculture, 
        subject to minimum Federal codes or standards then in effect.
            (3) Covered federally assisted housing.--For purposes of 
        this subsection, the term ``covered federally assisted 
        housing'' means--
                    (A) any residential or nonresidential structure for 
                which any HUD assistance is provided; and
                    (B) any new construction of single-family housing 
                (other than manufactured homes) subject to mortgages 
                insured, guaranteed, or made by the Secretary of 
                Agriculture under title V of the Housing Act of 1949 
                (42 U.S.C. 1471 et seq.).

SEC. 285. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR 
              MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-BASED 
              RENTAL ASSISTANCE.

    (a) Authority.--For multifamily housing projects for which project-
based rental assistance is provided under a covered multifamily 
assistance program, the Secretary shall, subject to the availability of 
amounts provided in advance in appropriation Acts, carry out a program 
to demonstrate the effectiveness of funding a portion of the costs of 
meeting the enhanced energy efficiency standards under section 284(b). 
At the discretion of the Secretary, the demonstration program may 
include incentives for housing that is assisted with Indian housing 
block grants provided pursuant to the Native American Housing 
Assistance and Self-Determination Act of 1996, but only to the extent 
that such inclusion does not violate such Act, its regulations, and the 
goal of such Act of tribal self-determination.
    (b) Goals.--The demonstration program under this section shall be 
carried out in a manner that--
            (1) protects the financial interests of the Federal 
        Government;
            (2) reduces the proportion of funds provided by the Federal 
        Government and by owners and residents of multifamily housing 
        projects that are used for costs of utilities for the projects;
            (3) encourages energy efficiency and conservation by owners 
        and residents of multifamily housing projects and installation 
        of renewable energy improvements, such as improvements 
        providing for use of solar, wind, geothermal, or biomass energy 
        sources;
            (4) creates incentives for project owners to carry out such 
        energy efficiency renovations and improvements by allowing a 
        portion of the savings in operating costs resulting from such 
        renovations and improvements to be retained by the project 
        owner, notwithstanding otherwise applicable limitations on 
        dividends;
            (5) promotes the installation, in existing residential 
        buildings, of energy-efficient and cost-effective improvements 
        and renewable energy improvements, such as improvements 
        providing for use of solar, wind, geothermal, or biomass energy 
        sources;
            (6) tests the efficacy of a variety of energy efficiency 
        measures for multifamily housing projects of various sizes and 
        in various geographic locations;
            (7) tests methods for addressing the various, and often 
        competing, incentives that impede owners and residents of 
        multifamily housing projects from working together to achieve 
        energy efficiency or conservation; and
            (8) creates a database of energy efficiency and 
        conservation, and renewable energy, techniques, energy-savings 
        management practices, and energy efficiency and conservation 
        financing vehicles.
    (c) Approaches.--In carrying out the demonstration program under 
this section, the Secretary may--
            (1) enter into agreements with the Building America Program 
        of the Department of Energy and other consensus committees 
        under which such programs, partnerships, or committees assume 
        some or all of the functions, obligations, and benefits of the 
        Secretary with respect to energy savings;
            (2) establish advisory committees to advise the Secretary 
        and any such third-party partners on technological and other 
        developments in the area of energy efficiency and the creation 
        of an energy efficiency and conservation credit facility and 
        other financing opportunities, which committees shall include 
        representatives of homebuilders, realtors, architects, 
        nonprofit housing organizations, environmental protection 
        organizations, renewable energy organizations, and advocacy 
        organizations for the elderly and persons with disabilities; 
        any advisory committees established pursuant to this paragraph 
        shall not be subject to the Federal Advisory Committee Act (5 
        U.S.C. App.);
            (3) approve, for a period not to exceed 10 years, 
        additional adjustments in the maximum monthly rents or 
        additional project rental assistance, or additional Indian 
        housing block grant funds under the Native American Housing 
        Assistance and Self-Determination Act of 1996, as applicable, 
        for dwelling units in multifamily housing projects that are 
        provided project-based rental assistance under a covered 
        multifamily assistance program, in such amounts as may be 
        necessary to amortize a portion of the cost of energy 
        efficiency and conservation measures for such projects;
            (4) develop a competitive process for the award of such 
        additional assistance for multifamily housing projects seeking 
        to implement energy efficiency, renewable energy sources, or 
        conservation measures; and
            (5) waive or modify any existing statutory or regulatory 
        provision that would otherwise impair the implementation or 
        effectiveness of the demonstration program under this section, 
        including provisions relating to methods for rent adjustments, 
        comparability standards, maximum rent schedules, and utility 
        allowances; notwithstanding the preceding provisions of this 
        paragraph, the Secretary may not waive any statutory 
        requirement relating to fair housing, nondiscrimination, labor 
        standards, or the environment, except pursuant to existing 
        authority to waive nonstatutory environmental and other 
        applicable requirements.
    (d) Requirement.--During the 4-year period beginning 12 months 
after the date of the enactment of this Act, the Secretary shall carry 
out demonstration programs under this section with respect to not fewer 
than 50,000 dwelling units.
    (e) Selection.--
            (1) Scope.--In order to provide a broad and representative 
        profile for use in designing a program which can become 
        operational and effective nationwide, the Secretary shall carry 
        out the demonstration program under this section with respect 
        to dwelling units located in a wide variety of geographic areas 
        and project types assisted by the various covered multifamily 
        assistance programs and using a variety of energy efficiency 
        and conservation and funding techniques to reflect differences 
        in climate, types of dwelling units and technical and 
        scientific methodologies, and financing options. The Secretary 
        shall ensure that the geographic areas included in the 
        demonstration program include dwelling units on Indian lands 
        (as such term is defined in section 2601 of the Energy Policy 
        Act of 1992 (25 U.S.C. 3501), to the extent that dwelling units 
        on Indian land have the type of residential structures that are 
        the focus of the demonstration program.
            (2) Priority.--The Secretary shall provide priority for 
        selection for participation in the program under this section 
        based on the extent to which, as a result of assistance 
        provided, the project will comply with the energy efficiency 
        standards under subsection (a), (b), or (c) of section 284 of 
        this subtitle.
    (f) Use of Existing Partnerships.--To the extent feasible, the 
Secretary shall--
            (1) utilize the Partnership for Advancing Technology in 
        Housing of the Department of Housing and Urban Development to 
        assist in carrying out the requirements of this section and to 
        provide education and outreach regarding the demonstration 
        program authorized under this section; and
            (2) consult with the Secretary of Energy, the Administrator 
        of the Environmental Protection Agency, and the Secretary of 
        the Army regarding utilizing the Building America Program of 
        the Department of Energy, the Energy Star Program, and the Army 
        Corps of Engineers, respectively, to determine the manner in 
        which they might assist in carrying out the goals of this 
        section and providing education and outreach regarding the 
        demonstration program authorized under this section.
    (g) Limitation.--No amounts made available under the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5) may be used to 
carry out the demonstration program under this section.
    (h) Reports.--
            (1) Annual.--Not later than the expiration of the 2-year 
        beginning upon the date of the enactment of this Act, and for 
        each year thereafter during the term of the demonstration 
        program, the Secretary shall submit a report to the Congress 
        annually that describes and assesses the demonstration program 
        under this section.
            (2) Final.--Not later than 6 months after the expiration of 
        the 4-year period described in subsection (d), the Secretary 
        shall submit a final report to the Congress assessing the 
        demonstration program, which--
                    (A) shall assess the potential for expanding the 
                demonstration program on a nationwide basis; and
                    (B) shall include descriptions of--
                            (i) the size of each multifamily housing 
                        project for which assistance was provided under 
                        the program;
                            (ii) the geographic location of each 
                        project assisted, by State and region;
                            (iii) the criteria used to select the 
                        projects for which assistance is provided under 
                        the program;
                            (iv) the energy efficiency and conservation 
                        measures and financing sources used for each 
                        project that is assisted under the program;
                            (v) the difference, before and during 
                        participation in the demonstration program, in 
                        the amount of the monthly assistance payments 
                        under the covered multifamily assistance 
                        program for each project assisted under the 
                        program;
                            (vi) the average length of the term of the 
                        such assistance provided under the program for 
                        a project;
                            (vii) the aggregate amount of savings 
                        generated by the demonstration program and the 
                        amount of savings expected to be generated by 
                        the program over time on a per-unit and 
                        aggregate program basis;
                            (viii) the functions performed in 
                        connection with the implementation of the 
                        demonstration program that were transferred or 
                        contracted out to any third parties;
                            (ix) an evaluation of the overall successes 
                        and failures of the demonstration program; and
                            (x) recommendations for any actions to be 
                        taken as a result of the such successes and 
                        failures.
            (3) Contents.--Each annual report pursuant to paragraph (1) 
        and the final report pursuant to paragraph (2) shall include--
                    (A) a description of the status of each multifamily 
                housing project selected for participation in the 
                demonstration program under this section; and
                    (B) findings from the program and recommendations 
                for any legislative actions.
    (i) Covered Multifamily Assistance Program.--For purposes of this 
section, the term ``covered multifamily assistance program'' means--
            (1) the program under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental 
        assistance;
            (2) the program under section 202 of the Housing Act of 
        1959 (12 U.S.C. 1701q) for assistance for supportive housing 
        for the elderly;
            (3) the program under section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 8013) for supportive 
        housing for persons with disabilities;
            (4) the program under section 236 of the National Housing 
        Act (12 U.S.C. 1715z-1 for assistance for rental housing 
        projects;
            (5) the program under section 515 of the Housing Act of 
        1949 (42 U.S.C. 1485) for rural rental housing; and
            (6) the program for assistance under the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4111).
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, including providing rent 
adjustments, additional project rental assistance, and incentives, 
$50,000,000 for each fiscal year in which the demonstration program 
under this section is carried out.
    (k) Regulations.--Not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act, the 
Secretary shall issue any regulations necessary to carry out this 
section.

SEC. 286. ADDITIONAL CREDIT FOR FANNIE MAE AND FREDDIE MAC HOUSING 
              GOALS FOR ENERGY-EFFICIENT AND LOCATION-EFFICIENT 
              MORTGAGES.

    Section 1336(a) of the Housing and Community Development Act of 
1992 (12 U.S.C. 4566(a)), as amended by the Federal Housing Finance 
Regulatory Reform Act of 2008 (Public Law 110-289; 122 Stat. 2654), is 
amended--
            (1) in paragraph (2), by striking ``paragraph (5)'' and 
        inserting ``paragraphs (5) and (6)''; and
            (2) by adding at the end the following new paragraph:
            ``(6) Additional credit.--
                    ``(A) In general.--In assigning credit toward 
                achievement under this section of the housing goals for 
                mortgage purchase activities of the enterprises, the 
                Director shall assign--
                            ``(i) more than 125 percent credit, for any 
                        such purchase that both--
                                    ``(I) complies with the 
                                requirements of such goals; and
                                    ``(II)(aa) supports housing that 
                                meets the energy efficiency standards 
                                under section 284(a) of the Green 
                                Resources for Energy Efficient 
                                Neighborhoods Act of 2009; or
                                    ``(bb) is a location-efficient 
                                mortgage, as such term is defined in 
                                section 1335(e); and
                            ``(ii) credit in addition to credit under 
                        clause (i), for any such purchase that both--
                                    ``(I) complies with the 
                                requirements of such goals, and
                                    ``(II) supports housing that 
                                complies with the enhanced energy 
                                efficiency and conservation standards, 
                                or the green building standards, under 
                                section 284(b) of such Act, or both,
                        and such additional credit shall be given based 
                        on the extent to which the housing supported 
                        with such purchases complies with such 
                        standards.
                    ``(B) Treatment of additional credit.--The 
                availability of additional credit under this paragraph 
                shall not be used to increase any housing goal, 
                subgoal, or target established under this subpart.''.

SEC. 287. DUTY TO SERVE UNDERSERVED MARKETS FOR ENERGY-EFFICIENT AND 
              LOCATION-EFFICIENT MORTGAGES.

    Section 1335 of Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4565), as amended by the Federal 
Housing Finance Regulatory Reform Act of 2008 (Public Law 110-289; 122 
Stat. 2654), is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following new subparagraph:
                    ``(D) Markets for energy-efficient and location-
                efficient mortgages.--
                            ``(i) Duty.--Subject to clause (ii), the 
                        enterprise shall develop loan products and 
                        flexible underwriting guidelines to facilitate 
                        a secondary market for energy-efficient and 
                        location-efficient mortgages on housing for 
                        very low-, low-, and moderate-income families, 
                        and for second and junior mortgages made for 
                        purposes of energy efficiency or renewable 
                        energy improvements, or both.
                            ``(ii) Authority to suspend.--
                        Notwithstanding any other provision of this 
                        section, the Director may suspend the 
                        applicability of the requirement under clause 
                        (i) with respect to an enterprise, for such 
                        period as is necessary, if the Director 
                        determines that exigent circumstances exist and 
                        such suspension is appropriate to ensure the 
                        safety and soundness of the portfolio holdings 
                        of the enterprise.'';
            (2) by adding at the end the following new subsection:
    ``(e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Energy-efficient mortgage.--The term `energy-
        efficient mortgage' means a mortgage loan under which the 
        income of the borrower, for purposes of qualification for such 
        loan, is considered to be increased by not less than $1 for 
        each $1 of savings projected to be realized by the borrower as 
        a result of cost-effective energy-saving design, construction 
        or improvements (including use of renewable energy sources, 
        such as solar, geothermal, biomass, and wind, super-insulation, 
        energy-saving windows, insulating glass and film, and radiant 
        barrier) for the home for which the loan is made.
            ``(2) Location-efficient mortgage.--The term `location-
        efficient mortgage' means a mortgage loan under which--
                    ``(A) the income of the borrower, for purposes of 
                qualification for such loan, is considered to be 
                increased by not less than $1 for each $1 of savings 
                projected to be realized by the borrower because the 
                location of the home for which loan is made will result 
                in decreased transportation costs for the household of 
                the borrower; or
                    ``(B) the sum of the principal, interest, taxes, 
                and insurance due under the mortgage loan is decreased 
                by not less than $1 for each $1 of savings projected to 
                be realized by the borrower because the location of the 
                home for which loan is made will result in decreased 
                transportation costs for the household of the 
                borrower.''.

SEC. 288. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE 
              INSURANCE PROGRAMS AND NATIVE AMERICAN AND NATIVE 
              HAWAIIAN LOAN GUARANTEE PROGRAMS.

    (a) FHA Mortgage Insurance.--
            (1) Requirement.--Title V of the National Housing Act is 
        amended by adding after section 542 (12 U.S.C. 1735f-20) the 
        following new section:

``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

    ``(a) Underwriting Standards.--The Secretary shall establish a 
method to consider, in its underwriting standards for mortgages on 
single-family housing meeting the energy efficiency standards under 
section 284(a) of the Green Resources for Energy Efficient 
Neighborhoods Act of 2009 that are insured under this Act, the impact 
that savings on utility costs has on the income of the mortgagor.
    ``(b) Goal.--It is the sense of the Congress that, in carrying out 
this Act, the Secretary should endeavor to insure mortgages on single-
family housing meeting the energy efficiency standards under section 
284(a) of the Green Resources for Energy Efficient Neighborhoods Act of 
2009 such that at least 50,000 such mortgages are insured during the 
period beginning upon the date of the enactment of such Act and ending 
on December 31, 2012.''.
            (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at the 
        end the following new paragraph:
            ``(3) With respect to each collection period that commences 
        after December 31, 2011, the total number of mortgages on 
        single-family housing meeting the energy efficiency standards 
        under section 284(a) of the Green Resources for Energy 
        Efficient Neighborhoods Act of 2009 that are insured by the 
        Secretary during the applicable collection period, the number 
        of defaults and foreclosures occurring on such mortgages during 
        such period, the percentage of the total of such mortgages 
        insured during such period on which defaults and foreclosure 
        occurred, and the rate for such period of defaults and 
        foreclosures on such mortgages compared to the overall rate for 
        such period of defaults and foreclosures on mortgages for 
        single-family housing insured under this Act by the 
        Secretary.''.
    (b) Indian Housing Loan Guarantees.--
            (1) Requirement.--Section 184 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
                    (A) by redesignating subsection (l) as subsection 
                (m); and
                    (B) by inserting after subsection (k) the following 
                new subsection:
    ``(l) Consideration of Energy Efficiency.--The Secretary shall 
establish a method to consider, in its underwriting standards for loans 
for single-family housing meeting the energy efficiency standards under 
section 284(a) of the Green Resources for Energy Efficient 
Neighborhoods Act of 2009 that are guaranteed under this section, the 
impact that savings on utility costs has on the income of the 
borrower.''.
            (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection 
        (a)(2) of this section, is further amended by adding at the end 
        the following new paragraph:
            ``(4) With respect to each collection period that commences 
        after December 31, 2011, the total number of loans guaranteed 
        under section 184 of the Housing and Community Development Act 
        of 1992 (12 U.S.C. 1715z-13a) on single-family housing meeting 
        the energy efficiency standards under section 284(a) of the 
        Green Resources for Energy Efficient Neighborhoods Act of 2009 
        that are guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and foreclosures 
        occurring on such loans during such period, the percentage of 
        the total of such loans guaranteed during such period on which 
        defaults and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and foreclosures on 
        loans for single-family housing guaranteed under such section 
        184 by the Secretary.''.
    (c) Native Hawaiian Housing Loan Guarantees.--
            (1) Requirement.--Section 184A of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by 
        inserting after subsection (l) the following new subsection:
    ``(m) Energy-efficient Housing Requirement.--The Secretary shall 
establish a method to consider, in its underwriting standards for loans 
for single-family housing meeting the energy efficiency standards under 
section 284(a) of the Green Resources for Energy Efficient 
Neighborhoods Act of 2009 that are guaranteed under this section, the 
impact that savings on utility costs has on the income of the 
borrower.''.
            (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)), as amended by the 
        preceding provisions of this section, is further amended by 
        adding at the end the following new paragraph:
            ``(5) With respect to each collection period that commences 
        after December 31, 2011, the total number of loans guaranteed 
        under section 184A of the Housing and Community Development Act 
        of 1992 (12 U.S.C. 1715z-13b) on single-family housing meeting 
        the energy efficiency standards under section 284(a) of the 
        Green Resources for Energy Efficient Neighborhoods Act of 2009 
        that are guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and foreclosures 
        occurring on such loans during such period, the percentage of 
        the total of such loans guaranteed during such period on which 
        defaults and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and foreclosures on 
        loans for single-family housing guaranteed under such section 
        184A by the Secretary.''.

SEC. 289. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT MORTGAGES 
              EDUCATION AND OUTREACH CAMPAIGN.

    Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 1701z-16) 
is amended by adding at the end the following new subsection:
    ``(g) Education and Outreach Campaign.--
            ``(1) Development of energy- and location-efficient 
        mortgages outreach program.--
                    ``(A) Commission.--The Secretary, in consultation 
                and coordination with the Secretary of Energy, the 
                Secretary of Education, the Secretary of Agriculture, 
                and the Administrator of the Environmental Protection 
                Agency, shall establish a commission to develop and 
                recommend model mortgage products and underwriting 
                guidelines that provide market-based incentives to 
                prospective home buyers, lenders, and sellers to 
                incorporate energy efficiency upgrades and location 
                efficiencies in new mortgage loan transactions.
                    ``(B) Report.--Not later than 24 months after the 
                date of the enactment of this Act, the Secretary shall 
                provide a written report to the Congress on the results 
                of work of the commission established pursuant to 
                subparagraph (A) and that identifies model mortgage 
                products and underwriting guidelines that may encourage 
                energy and location efficiency.
            ``(2) Implementation.--After submission of the report under 
        paragraph (1)(B), the Secretary, in consultation and 
        coordination with the Secretary of Energy, the Secretary of 
        Education, and the Administrator of the Environmental 
        Protection Agency, shall carry out a public awareness, 
        education, and outreach campaign based on the findings of the 
        commission established pursuant to paragraph (1) to inform and 
        educate residential lenders and prospective borrowers regarding 
        the availability, benefits, advantages, and terms of energy-
        efficient mortgages and location-efficient mortgages made 
        available pursuant to this section, energy-efficient and 
        location-efficient mortgages that meet the requirements of 
        section 1335 of the Housing and Community Development Act of 
        1992 (42 U.S.C. 4565), and other mortgages, including mortgages 
        for multifamily housing, that have energy improvement features 
        or location efficiency features and to publicize such 
        availability, benefits, advantages, and terms. Such actions may 
        include entering into a contract with an appropriate entity to 
        publicize and market such mortgages through appropriate media.
            ``(3) Renewable energy home product expos.--The Congress 
        hereby encourages the Secretary of Housing and Urban 
        Development to work with appropriate entities to organize and 
        hold renewable energy expositions that provide an opportunity 
        for the public to view and learn about renewable energy 
        products for the home that are currently on the market.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $5,000,000 for each of fiscal years 2010 through 
        2014.''.

SEC. 290. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION-
              EFFICIENT MORTGAGES THROUGH HOME MORTGAGE DISCLOSURE ACT.

    (a) In General.--Section 304(b) of the Home Mortgage Disclosure Act 
of 1975 (12 U.S.C. 2803(b)) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(5) the number and dollar amount of mortgage loans for 
        single-family housing and for multifamily housing that are 
        energy-efficient mortgages (as such term is defined in section 
        1335 of Housing and Community Development Act of 1992); and
            ``(6) the number and dollar amount of mortgage loans for 
        single-family housing and for multifamily housing that are 
        location-efficient mortgages (as such term is defined in 
        section 1335 of Housing and Community Development Act of 
        1992).''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to the first calendar year that begins after the 
expiration of the 30-day period beginning on the date of the enactment 
of this Act.

SEC. 291. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT 
              CONNECTED TO ELECTRICITY GRID.

    (a) Congressional Intent.--The Congress intends that--
            (1) consumers shall not be denied homeowners insurance for 
        a dwelling (as such term is defined in subsection (c)) based 
        solely on the fact that the dwelling is not connected to or 
        able to receive electricity service from any wholesale or 
        retail electric power provider;
            (2) States should ensure that consumers are able to obtain 
        homeowners insurance for such dwellings;
            (3) States should support insurers that develop voluntary 
        incentives to provide such insurance; and
            (4) States may not prohibit insurers from offering a 
        homeowners insurance product specifically designed for such 
        dwellings.
    (b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located in Indian 
areas (as such term is defined in section 4 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) 
and constructed or maintained using assistance, loan guarantees, or 
other authority under the Native American Housing Assistance and Self-
Determination Act of 1996 may be insured by any tribally owned self-
insurance risk pool approved by the Secretary of Housing and Urban 
Development.
    (c) Dwelling.--For purposes of this section, the term ``dwelling'' 
means a residential structure that--
            (1) consists of one to four dwelling units;
            (2) is provided electricity from renewable energy sources; 
        and
            (3) is not connected to any wholesale or retail electrical 
        power grid.

SEC. 292. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.

    (a) In General.--The Secretary of Housing and Urban Development 
shall establish incentives for increasing the energy efficiency of 
multifamily housing that is subject to a mortgage to be insured under 
title II of the National Housing Act (12 U.S.C. 1707 et seq.) so that 
the housing meets the energy efficiency standards under section 284(a) 
of this subtitle and incentives to encourage compliance of such housing 
with the energy efficiency and conservation standards, and the green 
building standards, under section 284(b) of this subtitle, to the 
extent that such incentives are based on the impact that savings on 
utility costs has on the operating costs of the housing, as determined 
by the Secretary.
    (b) Incentives.--Such incentives may include, for any such 
multifamily housing that complies with the energy efficiency standards 
under section 284(a)--
            (1) providing a discount on the chargeable premiums for the 
        mortgage insurance for such housing from the amount otherwise 
        chargeable for such mortgage insurance;
            (2) allowing mortgages to exceed the dollar amount limits 
        otherwise applicable under law to the extent such additional 
        amounts are used to finance improvements or measures designed 
        to meet the standards referred to in subsection (a); and
            (3) reducing the amount that the owner of such multifamily 
        housing meeting the standards referred to in subsection (a) is 
        required to contribute.

SEC. 293. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH 
              MORTGAGES.

    Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``, other than manufactured 
                homes,'' each place such term appears;
                    (B) by inserting after the period at the end the 
                following: ``The energy performance requirements 
                developed and established by the Secretary under this 
                section for manufactured homes shall require energy 
                star rating for wall fixtures, appliances, and 
                equipment in such housing.'';
                    (C) by inserting ``(1)'' after ``(a)''; and
                    (D) by adding at the end the following new 
                paragraphs:
    ``(2) The Secretary shall require, with respect to any single- or 
multi-family residential housing subject to a mortgage insured under 
this Act, that any approval or certification of the housing for meeting 
any energy efficiency or conservation criteria, standards, or 
requirements pursuant to this title and any approval or certification 
required pursuant to this title with respect to energy-conserving 
improvements or any renewable energy sources, such as wind, solar 
energy geothermal, or biomass, shall be conducted only by an individual 
certified by a home energy rating system provider who has been 
accredited to conduct such ratings by the Home Energy Ratings System 
Council, the Residential Energy Services Network, or such other 
appropriate national organization, as the Secretary may provide, or by 
licensed professional architect or engineer. If any organization makes 
a request to the Secretary for approval to accredit individuals to 
conduct energy efficiency or conservation ratings, the Secretary shall 
review and approve or disapprove such request not later than the 
expiration of the 6-month period beginning upon receipt of such 
request.
    ``(3) The Secretary shall periodically examine the method used to 
conduct inspections for compliance with the requirements under this 
section, analyze various other approaches for conducting such 
inspections, and review the costs and benefits of the current method 
compared with other methods.''; and
            (2) in subsection (b), by striking ``, other than a 
        manufactured home,''.

SEC. 294. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

    (a) Authority.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the 
Secretary shall develop and implement a pilot program under this 
section to facilitate the financing of cost-effective capital 
improvements for covered assisted housing projects to improve the 
energy efficiency and conservation of such projects.
    (b) Loans.--The pilot program under this section shall involve not 
less than three and not more than five lenders, and shall provide for a 
privately financed loan to be made for a covered assisted housing 
project, which shall--
            (1) finance capital improvements for the project that meet 
        such requirements as the Secretary shall establish, and may 
        involve contracts with third parties to perform such capital 
        improvements, including the design of such improvements by 
        licensed professional architects or engineers;
            (2) have a term to maturity of not more than 20 years, 
        which shall be based upon the duration necessary to realize 
        cost savings sufficient to repay the loan;
            (3) be secured by a mortgage subordinate to the mortgage 
        for the project that is insured under the National Housing Act; 
        and
            (4) provide for a reduction in the remaining principal 
        obligation under the loan based on the actual resulting cost 
        savings realized from the capital improvements financed with 
        the loan.
    (c) Underwriting Standards.--The Secretary shall establish 
underwriting requirements for loans made under the pilot program under 
this section, which shall--
            (1) require the cost savings projected to be realized from 
        the capital improvements financed with the loan, during the 
        term of the loan, to exceed the costs of repaying the loan;
            (2) allow the designer or contractor involved in designing 
        capital improvements to be financed with a loan under the 
        program to carry out such capital improvements; and
            (3) include such energy, audit, property, financial, 
        ownership, and approval requirements as the Secretary considers 
        appropriate.
    (d) Treatment of Savings.--The pilot program under this section 
shall provide that the project owner shall receive the full financial 
benefit from any reduction in the cost of utilities resulting from 
capital improvements financed with a loan made under the program.
    (e) Covered Assisted Housing Projects.--For purposes of this 
section, the term ``covered assisted housing project'' means a housing 
project that--
            (1) is financed by a loan or mortgage that is--
                    (A) insured by the Secretary under--
                            (i) subsection (d)(3) of section 221 of the 
                        National Housing Act (12 U.S.C. 1715l), and 
                        bears interest at a rate determined under the 
                        proviso of section 221(d)(5) of such Act; or
                            (ii) subsection (d)(4) of such section 221.
                    (B) insured or assisted under section 236 of the 
                National Housing Act (12 U.S.C. 1715z-1);
            (2) at the time a loan under this section is made, is 
        provided project-based rental assistance under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f) for 50 
        percent or more of the dwelling units in the project; and
            (3) is not a housing project owned or held by the 
        Secretary, or subject to a mortgage held by the Secretary.

SEC. 295. MAKING IT GREEN.

    (a) Partnerships With Tree-planting Organizations.--The Secretary 
shall establish and provide incentives for developers of housing for 
which any HUD financial assistance, as determined by the Secretary, is 
provided for development, maintenance, operation, or other costs, to 
enter into agreements and partnerships with tree-planting 
organizations, nurseries, and landscapers to certify that trees, 
shrubs, grasses, and other plants are planted in the proper manner, are 
provided adequate maintenance, and survive for at least 3 years after 
planting or are replaced. The financial assistance determined by the 
Secretary as eligible under this section shall take into consideration 
such factors as cost effectiveness and affordability.
    (b) Making It Green Plan.--In the case of any new or substantially 
rehabilitated housing for which HUD financial assistance, as determined 
in accordance with subsection (a), is provided by the Secretary for the 
development, construction, maintenance, rehabilitation, improvement, 
operation, or costs of the housing, including financial assistance 
provided through the Community Development Block Grant program under 
title I of the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), the Secretary shall require the development of a plan 
that provides for--
            (1) in the case of new construction and improvements, 
        siting of such housing and improvements in a manner that 
        provides for energy efficiency and conservation to the extent 
        feasible, taking into consideration location and project type;
            (2) minimization of the effects of construction, 
        rehabilitation, or other development on the condition of 
        existing trees;
            (3) selection and installation of indigenous trees, shrubs, 
        grasses, and other plants based upon applicable design 
        guidelines and standards of the International Society for 
        Arboriculture;
            (4) post-planting care and maintenance of the landscaping 
        relating to or affected by the housing in accordance with best 
        management practices; and
            (5) establishment of a goal for minimum greenspace or tree 
        canopy cover for the housing site for which such financial 
        assistance is provided, including guidelines and timetables 
        within which to achieve compliance with such minimum 
        requirements.
    (c) Partnerships.--In carrying out this section, the Secretary is 
encouraged to consult, as appropriate, with national organizations 
dedicated to providing housing assistance and related services to low-
income families, such as the Alliance for Community Trees and its 
affiliates, the American Nursery and Landscape Association, the 
American Society of Landscape Architects, and the National Arbor Day 
Foundation.

SEC. 296. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

    Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following new 
section:

``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

    ``(a) In General.--To the extent amounts are made available for 
grants under this section, the Secretary shall make grants under this 
section to States, metropolitan cities and urban counties, Indian 
tribes, and insular areas to carry out energy efficiency improvements 
in new and existing single-family and multifamily housing.
    ``(b) Allocations.--
            ``(1) In general.--Of the total amount made available for 
        each fiscal year for grants under this section that remains 
        after reserving amounts pursuant to paragraph (2), the 
        Secretary shall allocate for insular areas, for metropolitan 
        cities and urban counties, and for States, an amount that bears 
        the same ratio to such total amount as the amount allocated for 
        such fiscal year under section 106 for Indian tribes, for 
        insular areas, for metropolitan cities and urban counties, and 
        for States, respectively, bears to the total amount made 
        available for such fiscal year for grants under section 106.
            ``(2) Set aside for indian tribes.--Of the total amount 
        made available for each fiscal year for grants under this 
        section, the Secretary shall allocate not less than 1 percent 
        to Indian tribes.
    ``(c) Grant Amounts.--
            ``(1) Entitlement communities.--From the amounts allocated 
        pursuant to subsection (b) for metropolitan cities and urban 
        counties for each fiscal year, the Secretary shall make a grant 
        for such fiscal year to each metropolitan city and urban county 
        that complies with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so allocated 
        as the amount of the grant for such fiscal year under section 
        106 for such metropolitan city or urban county bears to the 
        aggregate amount of all grants for such fiscal year under 
        section 106 for all metropolitan cities and urban counties.
            ``(2) States.--From the amounts allocated pursuant to 
        subsection (b) for States for each fiscal year, the Secretary 
        shall make a grant for such fiscal year to each State that 
        complies with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so allocated 
        as the amount of the grant for such fiscal year under section 
        106 for such State bears to the aggregate amount of all grants 
        for such fiscal year under section 106 for all States. Grant 
        amounts received by a State shall be used only for eligible 
        activities under subsection (e) carried out in nonentitlement 
        areas of the State.
            ``(3) Indian tribes.--From the amounts allocated pursuant 
        to subsection (b) for Indian tribes, the Secretary shall make 
        grants to Indian tribes that comply with the requirement under 
        subsection (d) on the basis of a competition conducted pursuant 
        to specific criteria, as the Secretary shall establish by 
        regulation, for the selection of Indian tribes to receive such 
        amount.
            ``(4) Insular areas.--From the amounts allocated pursuant 
        to subsection (b) for insular areas, the Secretary shall make a 
        grant to each insular area that complies with the requirement 
        under subsection (d) on the basis of the ratio of the 
        population of the insular area to the aggregate population of 
        all insular areas. In determining the distribution of amounts 
        to insular areas, the Secretary may also include other 
        statistical criteria as data become available from the Bureau 
        of Census of the Department of Labor, but only if such criteria 
        are set forth by regulation issued after notice and an 
        opportunity for comment.
    ``(d) Statement of Activities.--
            ``(1) Requirement.--Before receipt the receipt in any 
        fiscal year of a grant under subsection (c) by any grantee, the 
        grantee shall have prepared a final statement of housing energy 
        efficiency objectives and projected use of funds as the 
        Secretary shall require and shall have provided the Secretary 
        with such certifications regarding such objectives and use as 
        the Secretary may require. In the case of metropolitan cities, 
        urban counties, units of general local government, and insular 
        areas receiving grants, the statement of projected use of funds 
        shall consist of proposed housing energy efficiency activities. 
        In the case of States receiving grants, the statement of 
        projected use of funds shall consist of the method by which the 
        States will distribute funds to units of general local 
        government.
            ``(2) Public participation.--The Secretary may establish 
        requirements to ensure the public availability of information 
        regarding projected use of grant amounts and public 
        participation in determining such projected use.
    ``(e) Eligible Activities.--
            ``(1) Requirement.--Amounts from a grant under this section 
        may be used only to carry out activities for single-family or 
        multifamily housing that are designed to improve the energy 
        efficiency of the housing so that the housing complies with the 
        energy efficiency standards under section 284(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 2009, 
        including such activities to provide energy for such housing 
        from renewable sources, such as wind, waves, solar, biomass, 
        and geothermal sources.
            ``(2) Preference for compliance beyond basic 
        requirements.--In selecting activities to be funded with 
        amounts from a grant under this section, a grantee shall give 
        more preference to activities based on the extent to which the 
        activities will result in compliance by the housing with the 
        enhanced energy efficiency and conservation standards, and the 
        green building standards, under section 284(b) of such Act.
    ``(f) Reports.--Each grantee of a grant under this section for a 
fiscal year shall submit to the Secretary, at a time determined by the 
Secretary, a performance and evaluation report concerning the use of 
grant amounts, which shall contain an assessment by the grantee of the 
relationship of such use to the objectives identified in the grantees 
statement under subsection (d).
    ``(g) Applicability of CDBG Provisions.--Sections 109, 110, and 111 
of the Housing and Community Development Act of 1974 (42 U.S.C. 5309, 
5310, 5311) shall apply to assistance received under this section to 
the same extent and in the same manner that such sections apply to 
assistance received under title I of such Act.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $2,500,000,000 for fiscal 
year 2010 and such sums as may be necessary for each fiscal year 
thereafter.''.

SEC. 297. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION 
              STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY 
              STRATEGIES.

    Section 105(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (19);
            (2) by striking the period at the end of paragraph (20) and 
        inserting ``; and'';
            (3) and by inserting after paragraph (20) the following new 
        paragraphs:
            ``(21) describe the jurisdiction's strategies to encourage 
        sustainable development for affordable housing, including 
        single-family and multifamily housing, as measured by--
                    ``(A) greater energy efficiency and use of 
                renewable energy sources, including any strategies 
                regarding compliance with the energy efficiency 
                standards under section 284(a) of the Green Resources 
                for Energy Efficient Neighborhoods Act of 2009 and with 
                the enhanced energy efficiency and conservation 
                standards, and the green building standards, under